Musgrave’s three functions of government do NOT include:
Options
AAllocation
BDistribution
CStabilization
DMaximization
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Public FinancePYQ - Nov 2018 (Inter)Question 136 of 20
All Questions Correct Answer
✅ Option d — Maximization
All Options:
- AAllocation
- BDistribution
- CStabilization
- DMaximization
About This Chapter: Public Finance
Paper
Paper 4: Business Economics
Weightage
10%
Key Topics
Fiscal Policy, Budget, Market Failure
This chapter deals with government finances — how the government earns (taxation) and spends (expenditure) money. Key topics include Fiscal Policy, types of taxes (Direct and Indirect), the Union Budget, Public Debt, and the concept of Market Failure and how government intervention corrects it.
View Official ICAI SyllabusExam Strategy Tip
Focus on the difference between Revenue and Capital items in the budget. Understand Fiscal Deficit and its implications. Tax-related MCQs are commonly asked.
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