Question

What is the primary objective of public expenditure in an economy?

• A. To maximize private sector profits and encourage competition.
• B. To fund government operations and administrative costs.
• C. To achieve maximum social welfare and economic stability.
• D. To redistribute wealth and reduce income inequality.

Answer 1

Answer:

C. To achieve maximum social welfare and economic stability.

• The main goal of public expenditure is to provide goods and services, promote economic growth, ensure social equity, and stabilize the economy to benefit the citizens.