Economics · Public Finance
One of the major distinctions between public finance and private finance is that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The state has no coercive legal powers to collect revenue while individuals possess such powers.
- 2The state cannot borrow money easily from public sources while individuals can easily secure massive institutional loans.
- 3The state adjusts 'income to expenditure' while an individual adjusts 'expenditure to income'.✓
- 4The state maximizes individual welfare while private entities maximize group welfare.
Correct answer
The state adjusts 'income to expenditure' while an individual adjusts 'expenditure to income'.
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