Public Finance - Chapter 1

The market economy includes

• Only private sector

• Only distribution follow the market mechanism

• Both private and public sectors

• Only distribution follow the non-market mechanism

Public sector is understood as:

• Central and local government

• Government in general and public corporations

• State sector and government in general

The distribution of the state is

• Non-market distribution

• Market distribution

The production possibilities curve can be expressed:

• The combination options between public sector and private sector

• The combination among production industries

The state intervention through macroeconomic tools is: ?

• Visible hand mechanism

• Invisible hand mechanism

The public sector includes which of the following institutions:

• System of power agencies

• 
  Technical, socio-economic infrastructure system

• Economic forces of government

• 
  Social security system

• International financial system

Public sector, Government sector and State sector sometimes use interchangeably?

• False

• True

According to the IMF, the public sector includes the general government and the public enterprises

• True

• false

The welfare economics theorem is based on the principles of which group of economics?

• Normative

• Positive

The first fundamental theorem of welfare economics state that:

• The economy will develop unstably

• The economy will self-adjust to reache Pareto efficiency

• The economy always achieves Pareto efficiency