Public Finance_M1

Which of the following is the primary objective of public finance?

• Maximize profits for businesses

• Maximize social welfare

• Maximize shareholder wealth

• Maximize economic growth

Which of the following is a source of government revenue?

• Wages and salaries

• Sales taxes

• Capital gains

• All of the above

Which of the following is an example of government expenditure?

• Construction of a new highway

• Purchase of a new car by an individual

• Payment of a salary to an employee by a private company

• All of the above

What is the role of fiscal policy in public finance?

• To regulate the money supply

• To control the level of government expenditure

• To regulate interest rates

• To stabilize the economy through government spending and taxation

Which of the following is a potential challenge facing public finance in today's global economy?

• Decreasing government debt

• Decreasing income inequality

• The rising cost of healthcare

• The elimination of taxes

What is the role of the central bank in public finance?

• To collect taxes on behalf of the government

• To regulate the money supply and interest rates

• To regulate the money supply and interest rates

• To set tax rates

Which of the following is an example of a social welfare program?

• A tax break for corporations

• A universal basic income program

• A reduction in government spending on education

• A decrease in government subsidies for farmers

How does public finance relate to sustainability and the environment?

• It has no impact on sustainability or the environment

• It encourages sustainable development through tax incentives

• It discourages sustainable development through tax penalties

• It has a neutral effect on sustainability and the environment

What is the role of international financial institutions such as the IMF and World Bank in public finance?

• To regulate government expenditures in developed countries

• To provide loans to governments in developing countries

• To regulate interest rates in developed countries

• To provide tax breaks to multinational corporations

What is the main difference between public finance and private finance?

• Public finance deals with the finances of individuals, while private finance deals with the finances of governments

• Public finance deals with the finances of governments, while private finance deals with the finances of individuals and businesses

• Public finance deals with international finances, while private finance deals with domestic finances

• There is no difference between public finance and private finance.