Bureaucracy is based on________________?
Correct answer: B. specialization
- A. ad hoc rules
- B. specialization
- C. unpredictability
- D. lack of authority
Explanation
Bureaucracy depends on specialization, with duties divided among officials who possess defined areas of competence. Ad hoc rules and unpredictability conflict with its formal, rule-based structure.
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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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