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UD7 - EXAM

Authored by Mariona Taniguchi

Social Studies

11th Grade

Used 1+ times

UD7 - EXAM
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40 questions

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1.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Which of the following expenses is considered current within the General State Budgets:

Salary of military personnel
Spending on highways
Payment to the unemployed
Aid to a productive sector

2.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Indicate which of the following statements is correct:

The deficit can be financed by issuing public debt
Treasury bonds are a way to improve the public surplus
Fiscal policies have no effect on the country's budget balance
Structural deficit is transient and depends on the economic cycle

3.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Indicate which of the following statements is FALSE:

Expansive fiscal policy always causes excessively high and uncontrollable inflation
An expansionary fiscal policy can cause undesired inflation and increase the public deficit
A restrictive fiscal policy mitigates economic recessions and stimulates economic activity
A restrictive fiscal policy can increase unemployment and reduce economic activity to undesirable levels, leading to deflation

4.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

The restrictive fiscal policy is based on:

Decreasing public spending and increasing taxes
Increasing taxes and public spending
Decreasing taxes and public spending
A policy contrary to economic activity

5.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Which of the following measures of fiscal policy is NOT expansive:

Turning a progressive tax into a proportional one, collecting the same
Hiring more civil servants
Increasing spending on public works
Decreasing taxes on business profits

6.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Public spending on improving highways is:

An investment expense
A subsidy expense
A current expense
A transfer expense

7.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Within other income of the General State Budgets, we do NOT find:

Social contributions
Funds from the EU
Revenue resulting from the sale of goods owned by the State
Income generated by State assets, such as profits from public companies

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