Fiscal Policy Quiz

What does fiscal policy primarily involve?

• Manipulating interest rates

• Regulating the stock market

• Manipulating taxes and government expenditures

• Controlling inflation

Which of the following is a main source of revenue for the Philippine government?

• Taxes

• Foreign investments

• Exports

• Loans from international banks

What is the relationship between fiscal policy and monetary policy?

• They are completely independent

• They are used in tandem to achieve goals

• Fiscal policy is more important than monetary policy

• Monetary policy is only used in emergencies

What is a fiscal deficit?

• When government revenue exceeds expenditures

• When government expenditures exceed revenue

• A surplus in the budget

• A balanced budget

Which of the following is NOT a characteristic of the fiscal situation in the Philippines?

• Reliance on both domestic and external sources

• High levels of surplus

• Increasing budget deficits

• Continuous levels of debt

How does the Philippines finance its fiscal deficit?

• By relying solely on foreign aid

• Through both domestic and external sources

• By increasing taxes only

• By cutting government expenditures

What is the primary goal of fiscal policy?

• To increase exports

• To reduce taxes

• To stabilize the economy

• To increase government spending

Which of the following best describes fiscal measures?

• They are only used during economic crises

• They are measures to stabilize the economy

• They are unrelated to government spending

• They only involve tax increases

What is the effect of increasing levels of debt on a country's economy?

• It reduces government revenue

• It always leads to economic growth

• It has no impact on fiscal policy

• It can lead to budget deficits

What type of revenue is collected in addition to taxes in the Philippines?

• Non-tax revenue

• Investment income

• Foreign aid

• Sales revenue