REVISION FOR FINAL EXAMINATION

1. Public finance is mainly concerned with:

• How individuals spend their income

• How government collects and spends money

• How private companies maximize profit

• How banks lend money

Which of the following is an example of operating expenditure?

• Paying government employees’ salaries

• Building a new hospital

• Constructing a bridge

• Purchasing military aircraft

A progressive tax means:

• Everyone pays the same tax rate

• Higher income earners pay a higher percentage of tax

• Lower income earners pay a higher percentage of tax

• Tax rate decreases as income increases

A budget deficit occurs when:

• Government spending exceeds revenue

• Government revenue exceeds spending

• Government spending equals revenue

• There is no change in economic activity

5. Industry 4.0 mainly focuses on:

• Automation and interconnectivity

• Manual labor and handcraft production

• Agricultural modernization

• Population growth

6. Which of the following is a technology used in IR4.0?

• Steam engine

• Cloud computing

• Typewriter

• Telegraph

7. One benefit of Industry 4.0 is:

• Increased operational efficiency

• Higher unemployment only

• Reduced innovation

• Decreased standard of living

8. Which job is under threat due to Industry 4.0?

• Bank teller

• Drone operator

• App developer

• Data scientist

9. International trade is defined as:

• Trade within one country

• Exchange of goods and services between countries

• Only export activities

• Domestic business expansion

10. According to Adam Smith, absolute advantage means:

• Producing more with the same resources

• Producing less but at higher cost

• Having no trade barriers

• Producing equal output as other countries