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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
 


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 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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