BP Intro

Which of the following is a direct tax?

• GST
• Income tax
• Excise duty
• Customs duty

Answer explanation

Jupiter is a gas giant made primarily of hydrogen and helium. Unlike terrestrial planets that have solid surfaces, gas giants like Jupiter don't have a well-defined solid surface, allowing them to accumulate more mass in a gaseous form. This composition has allowed Jupiter to grow significantly larger than planets with solid surfaces.

The Goods and Services Tax (GST) is best described as a:

• Direct tax
• Proportional tax
• Regressive tax
• Progressive tax

A budget surplus occurs when:

• Government spending equals government revenue
• Government revenue exceeds government spending
• Government spending exceeds revenue
• The RBA buys government bonds

The main aim of expansionary budgetary policy is to:

• Reduce inflation
• Increase interest rates
• Stimulate aggregate demand
• Reduce government debt

Company tax is an example of a:

• Progressive direct tax
• Proportional direct tax
• Regressive indirect tax
• Proportional indirect tax

Transfer payments include all of the following except:

• JobSeeker payments
• Public servant salaries
• Youth Allowance
• Aged pension

Which of the following would most likely be classified as capital expenditure?

• Transfer payment to a family
• Salaries for teachers
• Construction of a new highway
• Purchase of vaccines for a flu season

Which of the following statements best defines the underlying cash balance?

• Budget balance before tax receipts
• Budget balance including asset sales
• Budget balance excluding one-off items like asset sales
• Government debt divided by GDP

Which of the following taxes is most likely to be regressive?

• Personal income tax
• Excise tax on tobacco
• Company tax
• Capital gains tax

If the government increases spending on infrastructure and cuts income taxes, this most likely indicates:

• A contractionary stance
• An expansionary stance
• A surplus budget
• A neutral budget