Font size
WorksheetsMACROECONOMICS (CHAPTER 4: ROLES OF GOVERNMENT POLICY)
Total questions: 29
Worksheet time: 15mins
1. Government ensures the stability and economic growth of a country by the following except
adjusting the allocation of resources to alter the composition of the domestic output
controlling unemployment and inflation, which are caused by business fluctuations
encouraging the power of monopoly firms
redistributing income and wealth among the population
A deficit budget occurs when
the government’s total expenditure exceeds revenue
the government’s total expenditure equals revenue
tax collection is more than government expenditure
the public debt deceases
If the government’s total revenues are more than its total expenditure, it is called a _______.
balanced budget
surplus budget
deficit budget
trade surplus
Which of the following are examples of indirect taxes in Malaysia?
Petroleum income tax
export duties
Sales tax
Service tax
All of the following are examples of direct tax except________
personal income tax
company tax
stamp duties
services tax
The objectives of government taxation are as follows except
to increase inequality of income distribution between the rich and the poor
to restrain the consumer from consuming unhealthy products
to protect local and infant industries
to increase government revenue
A progressive tax is a tax that
is imposed only on higher income earners
will be the same for all income levels
goes on increasing with income
falls with the increase in income
Government development expenditure consists of __________.
pensions and gratuities
debt service charges
social services
subsidies
Government operating expenditure consists of
pensions and gratuities
agriculture and transport
housing and medical
communication and mineral resources
Compulsory contribution by an individual or a firm to the government to be used in the common interest of economy refers to
Tax revenue
Non tax revenue
Non-revenue receipts
Fixed tax
The government revenue such as licenses and permits, petroleum royalty, interest, fees and penalties refers to
tax revenue
non tax revenue
non-revenue receipts
government tax
The deficit budgets occurs when
the public debts decreases
the government's total expenditure equals revenue
tax collection is more than government expenditure
the government's total expenditure exceeds revenue
Which of the following government policies will help the economy to recover from inflation
The selling of government securities in the open market
The purchase of government securities in the open market
A decrease in the cash reserves requirements
A decrease in the discount rate
The followings are the objectives of taxation EXCEPT _______
equitable distribution of income
reduction of harmful consumption
involves penalty for non-payment
conservation of resources
The following is a category of taxes structure EXCEPT_____________
proportional tax
progressive tax
regressive tax
service tax
All the followings are examples of direct tax EXCEPT_____________
Personal income tax
Company tax
Stamp duties
Services tax
Emoluments, pensions and gratuities, debts, service charges and other types of expenditure are refer to _________.
operating expenditure
development expenditure
government expenditure
social expenditure
Public debt is also known as ____________________.
public services
public management
public expenditure
public borrowing
External sources of public debt are ________________.
loans from the international money market
borrowing from financial institutions
loans from commercial bank
loans from the central bank
These are instruments in monetary policy EXCEPT_____________.
Open market operation
Bank discount or bank rate
Regulation of foreign trade
Selective credit control
Which of the followings is a monetary policy tool?
A change in required reserves ratio of commercial bank
Controlling government expenditure
A reduction in personal income tax
An increase in public debt
Which of the followings can be categorized into qualitative instruments of monetary policy?
Funding
Interest rates
Open market operations
Legal cash reserve requirement
________is the minimum amount of cash that is required for commercial banks to keep in the central bank.
Discount rate or bank rate
Open market operations
Selective credit control
Legal cash reserve requirements
An example of fiscal policy is _______.
the purchase or selling of securities and treasury bills in the open market
influencing the rate of interest on deposits
adjusting the bank rate or discount rate
a change in value added tax
The contractionary fiscal policy is imposed by the government to ______.
reduce problems of inflation
. reduce problems of deflation
increase aggregate demand
increase the money supply in the economy
“Changes in government expenditure and taxes which occur automatically without any government action.” This statement refers to________.
objectives of fiscal policy
types of fiscal policy
discretionary fiscal policy
automatic fiscal policy
Petroleum income tax and stamp duties are two examples of the government revenues. These revenues fall under which category?
direct taxes
indirect tax
non-tax revenue
non-revenue receipts
An appropriate fiscal policy to tackle sever inflation is _______________.
a tax rate increase
depreciation of the currency
a reduction in interest rate
an increase in government spending
External sources of public borrowing are
loans from the international money market
borrowing from financial institutions
loans from commercial banks
loans from the central bank
