profile-img
Eduncle posted an MCQ
October 19, 2019 • 21:09 pm 0 points
  • UGC NET
  • Economics

Principle of maximum social advantage is concerned with :

Choose Your Answer:
0 Attempts Submit Now
  • 0 Likes
  • 1 Comments
  • 0 Shares
  • comment-profile-img>
    Eduncle Best Answer

    The principle of maximum social advantage implies that public expenditure is subject to diminishing marginal social benefits and taxes are subject to increasing marginal social costs. Thus, an equilibrium is reached when social advantage is maximised, i.e., when the size of the budget is such that marginal social benefits of public expenditures are equal to the marginal social sacrifice of taxation.

whatsapp-btn

Do You Want Better RANK in Your Exam?

Start Your Preparations with Eduncle’s FREE Study Material

  • Updated Syllabus, Paper Pattern & Full Exam Details
  • Sample Theory of Most Important Topic
  • Model Test Paper with Detailed Solutions
  • Last 5 Years Question Papers & Answers