Modern Public Finance

One of the function of the public finance is

• stabilization

• effectiveness

• maximization

• none of the above

"Rising public sector expenditures decrease private sector spending" - it is:

• inflation

• tax exemption

• crowding out effect

• none of the above

The idea of a Laffer curve is that there is a tax revenue maximizing point, beyond which total revenue will fall as taxes increase:

• yes

• no

Which type of an expenditure is investment activity:

• current

• capital

• total

• none of the above

Can growing public debt lead to greater risk of a fiscal crisis?

• yes

• no

Range of public sector is expressed by:

• public spending to GDP

• inflation

• credit ratio

• none of the above

EU budget revenues are from

• PIT

• CIT

• customs tariffs

• none of these

In local government the type of own-revenue is

• tax

• a subsidy

• a grant

• none of these

The type of a direct tax is

• VAT

• excise

• PIT

• none of these

Can reduction of corporate tax rates lead to increase in employment?

• no

• yes