public finance chapter 1

Q1) Public Finance addresses the process of:

• A-  Collection of taxes

• A-  Collection of taxes

• A-  Collection of taxes

• A-  Collection of taxes

Q2) The increase in the activities of the government cause:

• A-  Increase in the expenditures and decrease in revenues

•   Increase in the expenditures and revenues

• Not effect to both expenditures and revenues

• Both expenditures and revenues decrease

Public Expenditures of the government include:

• A-  Money spent on infrastructure

• A-  Money spent on private enterprises

• A-  Money spent on healthcare

• a and c

Tax income of the government refers to:

• A-  Interest income from lending money to other countries

• Rent of government properties

• money paid by people of the country

• all of the above

Public debit is formed when:

• A-  Public income exceeds public expenditures

• Both public expenditures and public income decrease

• Both public expenditures and public income decrease

• public expenditures exceeds public income

A country can borrow money to fill the gap between its expenditures and its income from:

• A-  The Public & Other countries

• A-  The IMF

• A-  Only the world bank

• a and b

Preparation, Passing and implementation of government budget are covered by:

• piscal policy tool

• Monetary Policy tools

• financial administration

•   Judicial Administration

Public goods are provided to only those who pay for it:

• true

• false

For the government to perform its various functions such as maintaining law and providing healthcare it need _____________ to reap the maximum benefits with the available public wealth.

•   The distribution function

•   The stabilization function

• the allocation function

• all of the above

To decrease the inequalities between people in the same society, the government implement some policies, Such as:

• Collection of taxes

• Prevent the selling of luxury goods

• using progressive taxes

•   Force price decrease