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Government raises its expenditure on producingpublic goods. Which economic value economic value does it reflect ? Explain. |
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Answer» Solution :Increased expenditureon producing PUBLIC goods such as school buildings, hospitals, defence services and maintaining LAW and order IMPLIES availability of increased public services to the people of the COUNTRY. For INSTANCE, more expenditure on maintaining law and order raises the sense of security among the people. Clearly, such expenditure by the government on producing public goods ensures welfare of the people. Value - Public welfare |
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