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WorksheetsCHAPTER 4: ROLE of GOVERNMENT POLICY
Total questions: 10
Worksheet time: 3mins
Government operating expenditure consists of
pension 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 the common interest of economy refers to _________________.
non-revenue receipts
non tax revenue
tax revenue
direct tax
The deficit budget occurs when
the public debt decreases
the government's total expenditure equals revenue
tax collection is more than government expenditure
the government's total expenditure exceeds revenue
Petroleum income tax and stamp duties are two examples of the government revenues. The revenues fall under which category?
Direct taxes
Indirect taxes
Non-tax revenue
Non-revenue receipts
Government revenue obtained from fees for issue of license and permit is
non-tax revenue
tax revenue
indirect tax
direct tax
The purpose of purchasing government securities by a central bank in the open market operation is for ________________.
increasing money supply and reduce interest rate
increasing money supply and raise interest rate
reducing money supply and raise interest rate
decreasing money supply and lower interest rate
Federal government revenue comprises sources such as
direct tax and indirect tax
tax revenue, non tax revenue and non-tax revenue receipts
tax revenue, import and export
tax revenue and petroleum royalty
The expansionary fiscal policy is imposed by the government to _______________.
reduce problem of inflation
reduce problem of deflation
increase aggregate demand
increase the money supply in the economy
Which of the following pairs is TRUE?
Taxes - Monetary Policy
Government expenditure - Monetary Policy
Government securities - Monetary Policy
Transfer payment - Monetary Policy
Government's total expenditure is less than its total revenue refers to ____________
negative budget
deficit budget
balanced budget
surplus budget
