The Role Of The Government

Which of the following is not a role of government?

• Allocative role

• Regulatory role

• Redistributive role

• Microeconomic management

Australia has a higher percentage of public sector employment than the OECD

• True

• False

Which of the following is the greatest source of revenue for the federal government?

• Company tax

• Customs duty

• Income tax

• Goods and services tax

What is the greatest source of expenditure for the federal government?

• Defence

• Health

• Education

• Social welfare

If the government is spending less than it is receiving, then it is a running a:

• Budget deficit

• Budget surplus

• Balanced budget

Which of the following is not an objective of the government:

• An efficient allocation of resources

• An equitable distribution of income

• The allocation of goods and services

• Sustainable economic growth

Which of the following best describes gross income:

• Wages, salaries, superannuation

• Prviate income + government welfare payments

• Private income - taxes

• Disposable income + government subsidies

Which of the following pictures best illustrates discrimination as a cause of income inequality:

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Which of the following statements are true in regards to income and wealth inequality:

• The top 20% of Australians own 40% of the income

• The top 20% of Australians own 40% of private wealth

• The lowest 20% of Australians own 10% of the income

• The lowest 20% of Australians own 10% of private wealth

True or False: The higher the Gini Coefficient, the better the income distribution of a nation:

• True

• False