ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In broad terms, the goal of macroeconomic policy is to provide a stable economic environment that is conducive to fostering strong and sustainable economic growth, on which the creation of jobs, wealth and improved living standards depend.

Detailed explanation-2: -Taxes, subsidies, price controls, regulations, minimum wage legislation, and government bailouts are all examples of different kinds of government intervention in the economy. The government may intervene to prevent a monopoly, to boost a struggling economy, or when poverty is worsening.

Detailed explanation-3: -A budget is an instrument of the Government that describes the annual estimated revenue and expenses along with the fiscal policy. It is a part of the government’s fiscal policy. It is presented in the parliament in February and consists of various expenditures, receipts and indicators of deficit in the economy.

Detailed explanation-4: -The opportunity cost of government spending on a particular program is the foregone benefit of increased spending on another program. For public goods, the marginal benefit of government provision can exceed marginal cost. Marginal benefit does not exceed marginal cost for all goods and services provided publicly.