#1
What is the primary source of revenue for the government?
Corporate taxes
Individual income taxes
Sales taxes
Property taxes
#2
What is the main purpose of a government budget?
To maximize corporate profits
To allocate resources and manage finances
To control the stock market
To regulate international trade
#3
In the context of government budgeting, what is a regressive tax?
A tax that decreases as income increases
A tax that increases as income increases
A tax that is constant regardless of income
A tax based on property ownership
#4
What is the purpose of a government budget surplus?
To stimulate economic growth
To reduce inflation
To increase government debt
To address unemployment
#5
What is the primary purpose of a government budget deficit?
To reduce government debt
To control inflation
To stimulate economic growth
To decrease unemployment
#6
Which type of budget estimates the government's expenditures and revenues for the upcoming fiscal year?
Supplementary budget
Capital budget
Operational budget
Annual budget
#7
What is the term for a budget deficit that occurs when government expenditures exceed revenues?
Surplus
Deficit
Balance
Equilibrium
#8
Which budgetary component represents the government's plan for acquiring and disposing of its financial assets?
Revenue budget
Capital budget
Operational budget
Expenditure budget
#9
What is the term for a situation where government expenditures are equal to government revenues?
Surplus
Deficit
Balance
Equilibrium
#10
Which economic principle suggests that higher government spending can stimulate economic activity during a recession?
Laffer Curve
Ricardian Equivalence
Keynesian Economics
Monetarism
#11
What is the primary purpose of a balanced budget?
To maximize government debt
To ensure government revenues exceed expenditures
To minimize government interference in the economy
To achieve economic equilibrium
#12
In the context of fiscal policy, what does contractionary policy aim to achieve?
Stimulate economic growth
Control inflation
Reduce unemployment
Increase government spending
#13
Which economic indicator is often used to measure the overall health of an economy?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Unemployment rate
Inflation rate
#14
Which fiscal policy approach involves increasing government spending and cutting taxes to stimulate economic growth?
Expansionary policy
Contractionary policy
Austerity policy
Monetary policy
#15
What does the term 'automatic stabilizer' refer to in the context of fiscal policy?
Policies implemented without government intervention
Structural adjustments for economic stability
Built-in features that stabilize the economy without specific legislative action
Financial instruments used for stabilizing currency
#16
In the context of fiscal policy, what is the crowding-out effect?
An increase in government spending leading to increased private investment
A decrease in government spending leading to decreased private investment
An increase in government spending leading to decreased private investment
A decrease in government spending leading to increased private investment
#17
Which factor is NOT typically considered in the formulation of fiscal policy?
Inflation
Unemployment
Interest rates
Exchange rates