Lesson Worksheet: Components of Public Finance Economics
In this worksheet, we will practice identifying public (government) expenditure, revenue, and budget as components of public finance.
Q1:
Which of the following is an example of indirect taxes?
- ASales tax
- BIncome tax
- CWealth tax
- DCorporation tax
- EProperty tax
Q2:
Which of the following does not belong to the canons of taxation?
- AConvenience
- BMandate
- CEconomy
- DCertainty
- EEquity
Q3:
Which of the following is not a component of public finance?
- APublic budget
- BPublic legislation
- CPublic expenditure
- DPublic revenue
Q4:
In most politically democratic countries, the imposition of taxes and the expenditure of their revenues must be consented to by the representatives of the citizens. Which of the following best represents the purpose of this law?
- AThe law serves to ensure free and fair market conditions in a capitalist economy.
- BThe law serves to prevent individual government officials from seeking profits from the public sector.
- CThe law serves to achieve economic equity among the nation’s citizens.
- DThe law serves to encourage the nation’s economy to grow at a reasonable rate.
Q5:
Which of the following is not an accurate description of the process of creating the public budget?
- AThe public revenue figures in the budget are merely projections.
- BThe past year’s expenditure is reviewed by a public auditing agency.
- CThe fiscal year aligns with the calendar year.
- DThe final budget must be approved by elected government officials.
Q6:
Which of the following taxation methods requires a larger percentage from high-income individuals?
- AProportional tax
- BHead tax
- CProgressive tax
- DIncome tax
Q7:
Which of the canons of taxation does the head tax violate in a capitalist economy?
- ACertain
- BEquitable
- CConvenient
- DMandatory
- EEconomic
Q8:
Which of the following are not sources of public revenue?
- ATaxes
- BState-owned businesses
- CFees
- DPrivate enterprises
Q9:
Which of the following is not an accurate description concerning public expenditure in democratic countries?
- APublic expenditure must be approved by the elected officials.
- BThe size of public expenditure must continuously increase.
- CPublic expenditure represents government intervention in the economy.
- DPublic expenditure should be made economically.
- EPublic expenditure should maximize its social benefits.
Q10:
Which of the following is not a characteristic of a good public budget?
- AThe budget cycle should occur once a year.
- BA particular tax revenue should not be earmarked for special purposes.
- CThe public revenue must be able to cover the public expenditures in each year.
- DBoth the public expenditure and revenue should be included in one document.
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