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Test your knowledge with this 20-question Public Finance Economics Quiz! Perfect for students and economics researchers preparing for exams, interviews, or competitive tests. Covers key concepts like fiscal policy, market failure, GDP, taxation, and government budgets to ensure you’re exam-ready. Let us start with the Online Public Finance Economics Quiz now.

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Created by Muhammad Imdad Ullah

Public Finance Economics 1

Online Multiple Choice Questions about Public Finance Economics

1 / 20

The national debt of a country is primarily financed through

Government-owned businesses

Personal savings of citizens

Foreign aid and grants

Borrowing in the financial markets

2 / 20

In public finance, what does the term "deadweight loss" refer to?

Loss of public goods provision

Loss of consumer surplus due to taxation

Loss of economic output due to market inefficiency

Loss of government revenue due to tax evasion

3 / 20

What is the term for the situation where a country specializes in producing goods for which it has a comparative advantage and trades them with other countries?

Comparative advantage

Protectionism

Mercantilism

Autarky

4 / 20

Which economic system relies on central planning and government ownership of the means of production?

Mixed economy

Socialism

Capitalism

Market economy

5 / 20

What is the Laffer curve used to illustrate in public finance?

The trade-off between equity and efficiency in taxation

The impact of government spending on economic growth

The relationship between tax rates and tax revenue

The relationship between inflation and taxation

6 / 20

Which of the following is not a type of government budget?

Deficit budget

Unrestricted budget

Balanced budget

Surplus budget

7 / 20

What is the term for a situation in which a government spends more money than it collects in revenue in a given fiscal year?

Fiscal equilibrium

Fiscal deficit

Fiscal surplus

Fiscal austerity

8 / 20

What does the term "opportunity cost" mean in economics?

The cost of labor and materials

The cost inflation

The cost of forgoing the next best alternative when making a choice

The explicit cost of production

9 / 20

What is the primary goal of public finance?

Maximizing government revenue

Maximizing economic inequality

Minimizing government expenditure

Allocating resources efficiently

10 / 20

Which of the following is a measure of income inequality?

Consumer Price Index (CPI)

Fiscal multiplier

Gross Domestic Product (GDP)

Gini coefficient

11 / 20

What is the primary tool used by central banks to control the money supply and influence interest rates?

Exchange rate policy

Fiscal policy

Trade policy

Monetary policy

12 / 20

Which of the following is a characteristic of a public good?

Non-excludable and non-rivalrous

Rivalry in consumption

High price elasticity of demand

Excludability

13 / 20

Which of the following is an example of a regressive tax?

Property tax

Progressive income tax

Corporate income tax

Value-added tax (VAT)

14 / 20

Which of the following is a measure of a country's overall economic output?

Producer Price Index (PPI)

Consumer Price Index (CPI)

Human Development Index (HDI)

Gross National Product (GNP)

15 / 20

Fiscal policy primarily involves the government's decisions related to

Interest rates

Foreign exchange rates

Monetary supply

Taxation and government spending

16 / 20

What is the term for a situation where the quantity demanded for a good exceeds the quantity supplied, leading to rising prices?

Surplus

Shortage

Elasticity

Equilibrium

17 / 20

Which of the following is a type of market failure?

Oligopoly

Monopsony

Monopoly

Perfect competition

18 / 20

Which of the following is NOT a component of Gross Domestic Product (GDP)?

Private consumption

Government expenditure

Net exports

Transfer payments

19 / 20

Which economic theory suggests that tax cuts for high-income individuals can stimulate economic growth?

Monetarism

Classical economics

Keynesian economics

Supply-side economics

20 / 20

Which economic concept refers to the increase in the overall price level of goods and services in an economy over time?

Deflation

Recession

Stagflation

Inflation

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Online Public Finance Economics Quiz with Answers

• What is the term for the situation where a country specializes in producing goods for which it has a comparative advantage and trades them with other countries?
• Which of the following is a measure of a country’s overall economic output?
• What is the term for a situation where the quantity demanded for a good exceeds the quantity supplied, leading to rising prices?
• Which of the following is a type of market failure?
• What does the term “opportunity cost” mean in economics?
• Which economic system relies on central planning and government ownership of the means of production?
• Which of the following is NOT a component of Gross Domestic Product (GDP)?
• What is the primary tool used by central banks to control the money supply and influence interest rates?
• Which of the following is a measure of income inequality?
• Which economic concept refers to the increase in the overall price level of goods and services in an economy over time?
• What is the term for a situation in which a government spends more money than it collects in revenue in a given fiscal year?
• The national debt of a country is primarily financed through
• Which of the following is not a type of government budget?
• In public finance, what does the term “deadweight loss” refer to?
• Which economic theory suggests that tax cuts for high-income individuals can stimulate economic growth?
• Fiscal policy primarily involves the government’s decisions related to
• Which of the following is a characteristic of a public good?
• What is the Laffer curve used to illustrate in public finance?
• Which of the following is an example of a regressive tax?
• What is the primary goal of public finance?

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