modern public finance

1.        One of the function of the public finance is:

• Stabilization

•   Maximalization

• effectiveness

• None of these

1.       “Rising public sector expenditures decrease private sector spending” – it is:

• Inflation

•   Tax exemption

• Crowding out effect

• None of these

1.       The idea of a Laffer curve is that there is a tax revenue maximizing point, beyond which total tax revenue going lower:

• Yes

•   No

1.       Which type of an expenditure is investment activity?

•   Current

•   Capital

• Total

• None of these

1.       Can growing public dept lead to greater risk of fiscal crisis?

• Yes

•   No

1.       Range of public sector is expressed by:

• Public spending to GDP

•   Inflation

• Credit ratio

• None of these

1.       EU budget revenues are from:

• PIT

•   CIT

• Custom tariffs

• None of these

1.       In local government the type of own-revenue is:

• None of these

• Tax

• Grant

• Subsidy

1.       Which of the following taxes is a direct tax?

• VAT

• excise tax

• PIT

• None of these

1.       Can reduction of corporate tax rates lead to increase in employment?

• Yes

• No