Eco 8.1

What does public finance explain?

• How banks give loans

• How individuals save money

• Govt role in economy

• How private companies make profits

Which is an example of an optional function?

• Maintaining police and army

• Running hospitals and schools

• Creating a legal system

• Protecting borders

Which has higher creditworthiness in the market?

• Public Finance

• Private Finance

• Both

• None

Which finance is more flexible and can be adjusted as needed?

• Public finance

• Private finance

• idk

• I wasn't attentive

What kind of functions do modern governments perform?

• Obligatory

• Optional

• Both

• None

What policy did most governments follow before the 20th century?

• Socialism

• Communism

• Capitalism

• Laissez-faire

Which of the following is an example of Revenue Expenditure?

• Salaries of government employees

• Loans to state governments

• Building roads

• Investment in Research and Development (R&D)

What does Capital Expenditure usually involve?

• Running daily government services

• Creating assets or reducing liabilities

• Paying salaries

• Providing healthcare

Which of these is a Developmental Expenditure?

• Spending on health and education

• Salaries of government employees

• Administration costs

• War expenditure

Can the burden of a direct tax be shifted to someone else?

• Yes

• No

• Is it?

• Ask Nirmala Sitharaman