Questions topic 2

Types of public finance

• Public revenue

• Public expenditure

• Public debt

• All of these

When expenditure exceeds total revenue, it is called:

• Surplus budget

• Balanced budget

• Deficit budget

• None of these

Pure public goods have which of the following characteristics

• Non-rivalrous and non-excludable in consumption

• Non-rivalrous and non-excludable in production

• There is no competition in consumption

• There is no competition in production

What is the primary purpose of issuing government bonds?

• To decrease government spending

• To increase inflation

• To raise funds for government projects and expenditures

• To reduce public debt

Which of the following best describes the concept of a progressive tax system?

• It imposes a higher tax rate on high-income earners compared to low-income earners.

• It imposes the same tax rate on all income levels

• It imposes a lower tax rate on high-income earners compared to low-income earners.

• It imposes a tax rate that decreases as income levels increase.

What is one of the functions of public finance ?

• Ensure the existence and operation of the government

• Increase the profit of public market

• Curb inflation in the domestic economy

• Create more jobs for the population

What does public revenue refer to ?

• To increase the state budget

• The various sources from which the state might derive its income.

• Ways in which companies can increase earnings.

• Methods for businesses to reduce taxes.

What is the purpose of tax revenue ?

• To fund government spending and various public expenditures.

• To increase capital for private enterprises.

• To help reduce the unemployment rate of society.

• To promote the development of industry and agriculture

Which of the following is an example of an indirect tax ?

• Poverty tax

• Income tax

• Sales tax

• Corporate tax

Which of the following represents a regressive tax ?

• Progressive income tax

• VAT

• Wealth tax

• Luxury tax