Muhammad Imdad Ullah

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

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

Elasticity

Equilibrium

Shortage

Surplus

2 / 20

What is the primary goal of public finance?

Minimizing government expenditure

Maximizing government revenue

Allocating resources efficiently

Maximizing economic inequality

3 / 20

Which of the following is a type of market failure?

Oligopoly

Monopoly

Perfect competition

Monopsony

4 / 20

Which of the following is a measure of income inequality?

Gini coefficient

Consumer Price Index (CPI)

Gross Domestic Product (GDP)

Fiscal multiplier

5 / 20

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

Trade policy

Fiscal policy

Monetary policy

Exchange rate policy

6 / 20

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

Balanced budget

Surplus budget

Deficit budget

Unrestricted budget

7 / 20

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

Net exports

Transfer payments

Private consumption

Government expenditure

8 / 20

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

Progressive income tax

Property tax

Value-added tax (VAT)

Corporate income tax

9 / 20

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

Market economy

Capitalism

Socialism

Mixed economy

10 / 20

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

High price elasticity of demand

Non-excludable and non-rivalrous

Rivalry in consumption

Excludability

11 / 20

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

Stagflation

Recession

Deflation

Inflation

12 / 20

Fiscal policy primarily involves the government's decisions related to

Foreign exchange rates

Taxation and government spending

Interest rates

Monetary supply

13 / 20

The national debt of a country is primarily financed through

Borrowing in the financial markets

Personal savings of citizens

Foreign aid and grants

Government-owned businesses

14 / 20

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

Supply-side economics

Monetarism

Keynesian economics

Classical economics

15 / 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?

Autarky

Mercantilism

Protectionism

Comparative advantage

16 / 20

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

The relationship between tax rates and tax revenue

The impact of government spending on economic growth

The trade-off between equity and efficiency in taxation

The relationship between inflation and taxation

17 / 20

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

The cost of labor and materials

The cost inflation

The explicit cost of production

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

18 / 20

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

Gross National Product (GNP)

Producer Price Index (PPI)

Human Development Index (HDI)

Consumer Price Index (CPI)

19 / 20

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

Loss of government revenue due to tax evasion

Loss of public goods provision

Loss of consumer surplus due to taxation

Loss of economic output due to market inefficiency

20 / 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 surplus

Fiscal austerity

Fiscal equilibrium

Fiscal deficit

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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?

Statistics and Data Analysis