quiz ktcc

Which of the following best defines Public Expenditure Analysis?

• Analysis of how taxes are collected

• Analysis of how government spending is used, its effectiveness, and impact on society

• Study of private investment performance

• Measurement of inflation impact on GDP

Which of the following is NOT a quantitative analysis method?

• Cost–Benefit Analysis (CBA)

• Econometric Evaluation

• Institutional Evaluation

• Cost–Effectiveness Analysis (CEA)

The main focus of qualitative analysis in public expenditure is:

• Measuring numerical efficiency

• Assessing fairness, governance, and social behavior

• Calculating net present value

• Measuring GDP growth

What is the main objective of measuring efficiency in public expenditure?

• To improve fairness

• To minimize costs and optimize resource use

• To ensure equal distribution of income

• To increase public participation

In a Cost–Benefit Analysis (CBA), which criterion indicates that a project should be accepted?

• IRR < discount rate

• NPV > 0

• B/C ratio < 1

• Costs > Benefits

The Internal Rate of Return (IRR) is defined as:

• The rate that maximizes project costs

• The discount rate that makes NPV equal zero

• The same as the social discount rate

• The benefit–cost ratio of a project

In social CBA, why may market prices not reflect true social costs or benefits?

• Because markets always operate efficiently

• Because of government transparency

• Due to market failures and distortions caused by taxes or externalities

• Because of high inflation

Public Expenditure Analysis only focuses on how much money the government spends, not on its effectiveness.

• True

• False

In Cost–Benefit Analysis, if NPV (Net Present Value) is greater than zero, the project should be considered acceptable.

• True

• False

 Quantitative analysis provides measurable, data-based evidence for policymaking.

• False

• True