This quiz works best with JavaScript enabled. Home > Finance > Public Finance > Public Finance – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Public Finance Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 3-public economics study all answers except A) Private pensation. B) Public education. C) Taxation. D) Public goods. Show Answer Correct Answer: A) Private pensation. 2. What is the structure of economic policy relationships? A) Tools-Goals-State mechanisms in the economy. B) State mechanisms in the economy-goals-tools. C) State mechanisms in the economy-tools-goals. D) Goals-Tools-State mechanisms in the economy. Show Answer Correct Answer: C) State mechanisms in the economy-tools-goals. 3. The concept of ..... is much appreciated by modern economists, as it relates to a change in the tax system. A) Formal tax incidence. B) Effective tax incidence. C) Differential incidence. D) Specific tax incidence. Show Answer Correct Answer: C) Differential incidence. 4. If one person use of it diminish other's use what kind of good is that? A) EXCLUDABLE. B) RIVAL IN CONSUMPTION. C) NATURAL GOODS. D) COMMON GOODS. Show Answer Correct Answer: B) RIVAL IN CONSUMPTION. 5. In 2003, President Bush chose to ..... A) Raise taxes. B) Cut taxes. C) Increase spending. D) None of above. Show Answer Correct Answer: B) Cut taxes. 6. Federal tax revenues (Federal government is bringing in money) ..... which are correct revenues? A) All are correct. B) Personal income tax. C) Payroll taxes (Federal FICA deducted from your check). D) Corporate income taxes. Show Answer Correct Answer: A) All are correct. 7. A proportional tax sets the same tax for everyone. A) True. B) False. Show Answer Correct Answer: B) False. 8. Which of the following is an example of a social welfare program? A) A universal basic income program. B) A reduction in government spending on education. C) A tax break for corporations. D) A decrease in government subsidies for farmers. Show Answer Correct Answer: A) A universal basic income program. 9. Which is the agency responsible for overseeing monetary policy? A) Fiscal Policy Office. B) Ministry of Finance. C) Main commercial banks. D) Central bank. Show Answer Correct Answer: D) Central bank. 10. A document issued by a bank that lists the amounts of money taken out of and paid into the bank account A) A current account. B) Accounts. C) A bank statement. D) A savings account. Show Answer Correct Answer: C) A bank statement. 11. Who dominated the international lending in the 19th Century? A) The Italians. B) The French. C) The English. D) The Dutch. Show Answer Correct Answer: C) The English. 12. We have ..... taxation systems A) 4. B) 3. C) 5. D) 2. Show Answer Correct Answer: B) 3. 13. Which statement correctly describes the components of public debt? A) Long-term national development plan. B) Borrowing to create growth. C) The difference between income and expenses. D) Government obligations resulting from borrowing. Show Answer Correct Answer: D) Government obligations resulting from borrowing. 14. This category deals with the area of general finance not classified under public finance A) PRIVATE FINANCE. B) PUBLIC FINANCE. Show Answer Correct Answer: A) PRIVATE FINANCE. 15. When someone dies, their heir has to pay A) VAT. B) Rebate. C) Income tax. D) Inheritance tax. Show Answer Correct Answer: D) Inheritance tax. 16. The government increase the personal income tax rates that discourage household spending. This is an example of ..... A) An inflationary fiscal policy. B) An expansionary fiscal policy. C) A contractionary fiscal policy. D) A monetary policy. Show Answer Correct Answer: C) A contractionary fiscal policy. 17. What is the role of the central bank in public finance? A) To collect taxes on behalf of the government. B) To regulate the money supply and interest rates. C) To regulate the money supply and interest rates. D) To set tax rates. Show Answer Correct Answer: B) To regulate the money supply and interest rates. 18. The ..... is detailed investigation and analysis of a proposed business venture to determine its viability. A) FINANCIAL STATEMENT. B) FEASIBILITY STUDY. Show Answer Correct Answer: B) FEASIBILITY STUDY. 19. The compulsory payment by citizens to the government without expecting any direct benefit in return is called A) Public revenue. B) Revenue receipts. C) Net revenue. D) Tax. Show Answer Correct Answer: D) Tax. 20. 8-By using a mix of monetary and fiscal policies governments can control economic phenomena A) False. B) True. Show Answer Correct Answer: B) True. 21. ..... refers to sustained increase in a country's output of goods and services, or more precisely product per capita over a long period of time. A) Economic Development. B) Public Goods. C) Economics. D) Economic Growth. Show Answer Correct Answer: D) Economic Growth. 22. Public Expenditures of the government include: A) A-Money spent on infrastructure. B) A-Money spent on private enterprises. C) A-Money spent on healthcare. D) A and c. Show Answer Correct Answer: D) A and c. 23. An example for Indirect tax is A) Personal income tax. B) Stamp duty. C) GST. D) Corporate tax. Show Answer Correct Answer: C) GST. 24. Who issues the guidelines on the release and utilization of funds? A) Senate. B) House of Representatives. C) Office of the President. D) Department of Budget and Management. Show Answer Correct Answer: D) Department of Budget and Management. 25. When the average tax rate increases as income increases (the more you make, the more you pay)! A) Progressive tax. B) Regressive tax. C) All are correct. D) Proportional tax. Show Answer Correct Answer: A) Progressive tax. 26. The case of a sharply stagnant economy corresponds to what type of aggregate demand? A) Aggregate demand in the economy is too high. B) Aggregate demand in the economy is too little. C) Aggregate demand in the economy is too tight. D) Aggregate demand in the economy is too tight. Show Answer Correct Answer: B) Aggregate demand in the economy is too little. 27. OBJECTIVE IS ONE OF THE IMPORTANT CHARACTERISTICS IN PREPARING BUDGET A) YES. B) NO . Show Answer Correct Answer: A) YES. 28. Corporate income tax ..... A) In the long run, some of the tax may be borne by workers through lower wages. B) In the short run the full tax falls on owners of the businesses. C) All of the choice. D) None of above. Show Answer Correct Answer: C) All of the choice. 29. PUBLIC expenditure refers to expenditures made by ..... A) NGOs. B) Private firms. C) Public authorities. D) International agencies. Show Answer Correct Answer: C) Public authorities. 30. The government of General Prayut Chan-o-cha has used the power from the State Fiscal Discipline Act 2018 to expand the public debt ceiling. A) Section 50. B) Section 48. C) Section 47. D) Section 49. Show Answer Correct Answer: A) Section 50. ← PreviousNext →Related QuizzesFinance QuizzesPublic Finance Quiz 1Public Finance Quiz 3Public Finance Quiz 4Public Finance Quiz 5Public Finance Quiz 6Public Finance Quiz 7Public Finance Quiz 8Public Finance Quiz 9Public Finance Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books