Y12 Econ Quiz Week 2 19th Jul

What is the incidence of taxation?

• The distribution of tax burden between buyers and sellers

• The total amount of tax collected by the government

• The process of tax collection

• The rate at which tax is levied

Which of the following is an example of an indirect tax?

• Income tax

• Goods and Services Tax (GST)

• Property tax

• Corporate tax

What is the primary goal of fiscal policy?

• To control inflation

• To regulate the money supply

• To manage government spending and taxation

• To stabilise the currency

A government budget deficit occurs when:

• Government revenue exceeds government expenditure

• Government expenditure exceeds government revenue

• Government revenue equals government expenditure

• Government borrows money

A budget surplus is defined as:

• Government revenue exceeding government expenditure

• Government expenditure exceeding government revenue

• Government revenue equalling government expenditure

• Government borrowing money

Which of the following best describes a proportional tax?

• A tax that takes a larger percentage of income from high-income earners

• A tax that takes the same percentage of income from all income earners

• A tax that takes a larger percentage of income from low-income earners

• A tax that is only applied to luxury goods

Cyclical factors in the economy are:

• Long-term trends in economic growth

• Short-term fluctuations in economic activity

• Permanent changes in the economic structure

• Government interventions in the economy

What is a government budget?

• A plan for government spending and revenue for a specific period

• A list of government assets and liabilities

• A record of past government expenditures

• A strategy for economic development

Which of the following is NOT a tool of fiscal policy?

• Government spending

• Taxation

• Interest rates

• Transfer payments

An increase in indirect taxes is likely to:

• Decrease consumer prices

• Increase consumer prices

• Have no effect on consumer prices

• Decrease government revenue