#1
What is the primary source of revenue for the government?
Income Tax
Sales Tax
Property Tax
Corporate Tax
#2
What is the debt-to-GDP ratio used to measure in government finance?
Inflation rate
Public debt sustainability
Unemployment rate
Tax revenue
#3
What does the term 'sequestration' refer to in the context of government finance?
Automatic spending cuts triggered by law
Tax breaks for specific industries
Increasing government subsidies
Selling government assets
#4
What is the purpose of a government subsidy in fiscal policy?
To generate revenue for the government
To encourage certain economic activities or industries
To reduce inflation
To fund military operations
#5
In fiscal policy, what is the purpose of an 'automatic stabilizer'?
To automatically adjust tax rates
To automatically stabilize the economy during economic fluctuations
To automatically reduce government debt
To automatically privatize government-owned enterprises
#6
What does GDP stand for in the context of government finance?
Gross Domestic Product
Government Debt Policy
General Development Plan
Government Duty Payment
#7
Which of the following is a contractionary fiscal policy measure?
Increasing government spending
Decreasing taxes
Increasing interest rates
Providing subsidies
#8
Which of the following is an example of an automatic stabilizer in fiscal policy?
Unemployment benefits
Tax breaks for corporations
Infrastructure spending
Subsidies for farmers
#9
What is the purpose of a government budget deficit?
To stimulate economic growth
To control inflation
To reduce public debt
To increase interest rates
#10
In the context of fiscal policy, what is the purpose of an expansionary policy?
To reduce inflation
To stimulate economic growth
To decrease government spending
To increase interest rates
#11
What is the purpose of a sovereign wealth fund?
To provide loans to other countries
To invest excess reserves for future generations
To finance military operations
To fund social welfare programs
#12
What is the Laffer curve used to illustrate in fiscal policy?
The relationship between tax rates and government revenue
The impact of inflation on economic growth
The effectiveness of monetary policy
The distribution of wealth in society
#13
Which agency is responsible for monetary policy in the United States?
Federal Reserve
Treasury Department
Securities and Exchange Commission (SEC)
Department of Commerce
#14
What is the crowding-out effect in fiscal policy?
Increased government spending leads to decreased private sector investment
Decreased government spending leads to increased private sector investment
Increased government spending leads to increased private sector investment
Decreased government spending leads to decreased private sector investment
#15
What is the primary objective of countercyclical fiscal policy?
To exacerbate economic cycles
To align with the natural economic cycle
To counteract economic downturns or upturns
To implement fixed tax rates