17 Questions
What is the main purpose of the Competition Act in India?
To promote competition and prevent anti-competitive activities
Why does the government intervene in the distribution of income and wealth?
To ensure a more socially optimal distribution
What is the redistributive function of the budget related to?
Income and wealth distribution among individuals
Which statement best describes the role of governments in economic growth?
Governments can influence resource allocation through regulatory activities
What ideology emphasized equality and created pressure on governments to redistribute wealth?
Socialism
How does the government ensure a more socially optimal distribution of income?
By intervening in the market through regulations
In what ways can governments redistribute income and wealth?
Through expenditure or revenue side of the budget
Which factor leads to government intervention in economic activities according to the text?
Skewed distribution if left to the market forces
What is the primary responsibility of the Finance Commission in India?
Recommending sharing of taxes between the union and state governments
Which statement accurately describes one of the functions of the Finance Commission?
Determining principles for grants-in-aid to states in need
How does the Finance Commission contribute to maintaining fiscal federalism in India?
By recommending principles for the distribution of taxes among states
What is a key aspect of the Finance Commission's role according to the text?
Recommending measures to enhance state consolidation funds
Which function is NOT performed by the Finance Commission in India?
Allocating all tax revenues directly to the union government
What distinguishes the role of the Finance Commission in India from other bodies?
Institutional mechanism for facilitating resource transfers
In what way does the Finance Commission impact resource allocation in India?
By recommending principles for tax revenue sharing
Which statement best describes the Finance Commission's involvement in enhancing local governance?
Recommending measures to supplement resources for local bodies
What makes the Finance Commission a critical component of fiscal federalism in India?
Determination of tax distribution principles among states
Explore the various ways in which governments intervene in resource allocation, such as establishing property rights, enforcing contracts, and addressing externalities. Learn how government actions can impact the production and consumption of goods and services.
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