Government has started spending more on providing free services like education and health to the poor .
Explain the economic value it reflects .(3 marks required in points ) [ Is it related to provision of public goods ]
Rahul, this statement does not relate to public goods. Public goods are characterised by non-excludable and non-rivalrous nature. Both these features are not present in education and health.
To learn more about public goods and their features, follow the given link.
https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-macroeconomics/the-government-budget-and-the-economy/341_1990_5849#slide1_introduction-to-public-and-private-goods-distribution-stabilisation-allocation-function-and-problem-of-free-rider
The correct answer of this question is.
1) 'Promotion of social welfare' is the economic value which is being reflected in the given statement.
2) To ensure the availability of health and education implies that government intends to distribute the income on equitable basis in the economy.
3) Government taxes the higher income population and subsidises the facilities for the poor by using that tax revenue to enhance social equality.
If you still have any doubt in this question, do get back to us.
To learn more about public goods and their features, follow the given link.
https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-macroeconomics/the-government-budget-and-the-economy/341_1990_5849#slide1_introduction-to-public-and-private-goods-distribution-stabilisation-allocation-function-and-problem-of-free-rider
The correct answer of this question is.
1) 'Promotion of social welfare' is the economic value which is being reflected in the given statement.
2) To ensure the availability of health and education implies that government intends to distribute the income on equitable basis in the economy.
3) Government taxes the higher income population and subsidises the facilities for the poor by using that tax revenue to enhance social equality.
If you still have any doubt in this question, do get back to us.