Which acronym stands for Redistributive, Allocative, Stabilisation?

Which acronym stands for Redistributive, Allocative, Stabilisation?

• A. Regulation, Allocation, and Subsidy
• B. Redistributive, Allocative, Stabilisation
• C. Resource Allocation and Social Welfare
• D. Redistribution and Stabilisation

Answer: (B)

The main idea here is the three broad roles a government plays in the economy: Redistributive actions to reduce inequality, Allocative decisions to ensure resources are used where society wants them, and Stabilisation to smooth the business cycle. The phrase Redistributive, Allocative, Stabilisation directly names these three functions, so it exactly matches what the acronym (often remembered as RAS) stands for. The other options mix in different concepts or omit one of the functions, so they don’t capture all three purposes.

The main idea here is the three broad roles a government plays in the economy: Redistributive actions to reduce inequality, Allocative decisions to ensure resources are used where society wants them, and Stabilisation to smooth the business cycle. The phrase Redistributive, Allocative, Stabilisation directly names these three functions, so it exactly matches what the acronym (often remembered as RAS) stands for. The other options mix in different concepts or omit one of the functions, so they don’t capture all three purposes.