Question : Which objective of government budget is highlighted here?
Government imposes heavy taxation to discourage the consumption of harmful consumption goods like liquor, cigarettes, etc.
Option 1: Reallocation of resources
Option 2: Reducing income inequalities
Option 3: Economic stability
Option 4: Economics growth
Answer (1)
19th Jan, 2024
Correct Answer:
Reallocation of resources
Solution :
Under allocation of resources Government imposes heavy taxation to discourage the consumption of harmful consumption goods like liquor, cigarettes, etc. It is a part of tax concessions or subsidies under allocation of resources.
Hence Option A is correct.
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