Public Finance MCQs

indirect tax refers to a tax imposed on transactions, goods or services

public debt refers to outstanding borrowing of government

progressive tax is the term that matches the description: a tax whose effective rate rises as the tax base increases

subsidy refers to financial support intended to reduce cost or encourage an activity

direct tax refers to a tax imposed directly on income, wealth or profits

direct tax is the term that matches the description: a tax imposed directly on income, wealth or profits

budget is the term that matches the description: a financial plan of expected revenue and expenditure

fiscal policy is the term that matches the description: government use of taxation and expenditure to influence the economy

direct tax is the term that matches the description: a tax imposed directly on income, wealth or profits

capital budget refers to budgeting for long-term assets and development expenditure

subsidy refers to financial support intended to reduce cost or encourage an activity

budget deficit is the term that matches the description: the amount by which expenditure exceeds revenue