Fiscal Policy Quiz

What are the main tools the government uses to influence economic growth, employment, inflation, and income distribution?

• Monetary policy and interest rates

• Spending, taxation, and government charges

• Trade policies and tariffs

• Labor laws and regulations

What is the budget an annual statement of?

• Expected revenue and planned expenditures

• Expected revenue and planned savings

• Expected expenditures and planned savings

• Expected savings and planned expenditures

For which period is the budget planned?

• 1 January to 31 December

• 1 April to 31 March

• 1 July to 30 June

• 1 October to 30 September

What is one of the roles of fiscal policy (FP) in influencing the market?

• Influence market allocation of resources

• Influence the market distribution of goods

• Influence the market distribution of services

• Influence the market allocation of labor

What is the most important role of fiscal policy (FP) according to the document?

• Influence market allocation of resources

• Influence the market distribution of income

• Manage aggregate expenditure

• Influence the market distribution of goods

What does the formula C + I + G + X - M represent in the context of fiscal policy (FP)?

• Market allocation of resources

• Aggregate expenditure

• Redistribution of income

• Market distribution of goods

Which of the following is NOT a role of fiscal policy (FP) mentioned in the document?

• Influence market allocation of resources

• Influence the market distribution of income

• Manage aggregate expenditure

• Influence the market distribution of goods

What are the key areas fiscal policy (FP) aims to influence for economic stability and growth?

• Internal stability, external stability, stable and sustainable economic growth

• Market distribution, resource allocation, income redistribution

• External stability, market distribution, income redistribution

• Resource allocation, income redistribution, market distribution

What is the first step in the process of passing the budget?

• Money is released from the Commonwealth’s accounts with the RBA

• Tax changes come into effect

• Parliament votes to accept the Commonwealth Budget

• Funding is released for salaries of public servants

From which accounts is money released after the budget is accepted?

• State government accounts

• Commonwealth’s accounts with the RBA

• Private bank accounts

• International accounts