Question

Identify the incorrect statement from the following:

Options

• Expenditure on providing free education and health care facilities, unemployment allowance, old age pension etc. tend to reduce inequalities of income.

• Expenditure on economic and social infrastructure raises the productive capacity of the economy.

• Public expenditure is needed for provision of collective wants to maximise social welfare.

• None of these

Answer 1

None of these

Explanation:

All of the given statements are correct.

1. Spending on free education, healthcare, and pensions serves to minimise economic inequality by benefiting lower-income groups.
2. Investment in economic and social infrastructure expands the economy's productive potential, resulting in long-term growth.
3. Government spending on collective goods such as defence, law enforcement, and public welfare maximises social welfare.

As a result, all of the statements are correct.