Free Public Finance MCQs with Answers
406 Public Finance MCQs from Economics, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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406 questions · page 6 of 21
- A. provide group representation above and beyond that provided by our elected officials in Congress
- B. provide geographic representation
- C. bring into the open obscure problems to be solved
- D. choose candidates for political office
Explanation: Interest groups represent specific interests that may not be adequately expressed through geographically elected legislators.
Correct answer: provide group representation above and beyond that provided by our elected officials in Congress102. Which of the following groups has traditionally had the worst voting record in the United States ?
- A. Urban and suburban residents
- B. The young and underprivileged
- C. College educated professionals
- D. White collar workers
Explanation: Young people and disadvantaged citizens have traditionally voted at lower rates because of weaker political engagement, fewer resources…
Correct answer: The young and underprivileged- A. Lockean model
- B. referendum model
- C. majoritarian model
- D. Madisonian model
Explanation: The majoritarian model treats democracy as rule by the majority, usually through direct or representative decision-making.
Correct answer: majoritarian model- A. groups of people interested in specific legislation
- B. groups of people who want to enter politics
- C. wealthy and civicminded people with excessive leisure time.
- D. coalitions of individuals with similar attitudes and interests who attempt to influence public policy
Explanation: An interest group is an organized coalition whose members share attitudes or interests and seek to influence public policy without…
Correct answer: coalitions of individuals with similar attitudes and interests who attempt to influence public policy- A. they are the same
- B. public opinion is limited to few issues
- C. political opinion deals with all matters
- D. political opinion is all opinions expressed on political issues
Explanation: Public opinion is the broader set of views held by the public, whereas political opinion specifically concerns views expressed about…
Correct answer: political opinion is all opinions expressed on political issues- A. national state
- B. nationless state
- C. intergovernmental organization
- D. nongovernmental organization
Explanation: The Catholic Church operates independently of any single government and is therefore treated as a nongovernmental organization.
Correct answer: nongovernmental organization- A. a general support of the government
- B. full support of democratic principles
- C. the majority of people and political leaders are equally committed to democratic values
- D. a general cynicism about government
Explanation: Although Americans may support democratic ideals, surveys commonly show distrust and dissatisfaction with government institutions.
Correct answer: a general cynicism about government- A. Republican Club
- B. Democratic Club
- C. Political Action Committee
- D. Rules Committee
Explanation: A Political Action Committee raises and spends money to influence elections and legislation, so large contributions can give it…
Correct answer: Political Action Committee- A. greater ideological division
- B. increasing numbers of Independents
- C. greater freedom of action for candidates
- D. adopting a winner-takes -all principle
Explanation: Greater ideological division can make party positions clearer and give voters more distinct choices.
Correct answer: greater ideological division- A. define the interests of the people in the form of a platform
- B. provide personnel to run the government
- C. engage in political socialization
- D. all of the above
Explanation: Political parties develop platforms, recruit people for public office and government posts, and teach citizens political beliefs and…
Correct answer: all of the above111. The synthesis of the elitist and pluralist approaches realist democracy assumes that_____________?
- A. voters do have a choice in elite competition
- B. the elites have a consensus on basic democracy
- C. new groups can become the new elite
- D. all of the above
Explanation: Realist democracy combines pluralist competition with elitist influence: voters choose among competing elites, elites share basic…
Correct answer: all of the above- A. everyone participates in the political process
- B. real equality for everyone is a fact
- C. there is no ruling elite
- D. members of Congress and their constituents generally do not know much about what the other thinks
Explanation: The relationship between representatives and constituents is often marked by limited mutual knowledge, because each side has different…
Correct answer: members of Congress and their constituents generally do not know much about what the other thinks- A. power is spread through multiple centers
- B. policy reflects the wishes of a few elites
- C. significant decisions are made by the upper classes
- D. power is in the hands of a small homogeneous class of leaders
Explanation: Pluralism holds that political power is dispersed among several competing groups and institutions rather than concentrated in one elite.
Correct answer: power is spread through multiple centers- A. military and business leaders
- B. middle-class urban residents
- C. union leaders
- D. intellectuals
Explanation: Power-elite theory identifies a relatively small ruling circle drawn especially from major business and military leadership, often…
Correct answer: military and business leaders- A. pluralism
- B. power elitism
- C. absolute power
- D. authoritarianism
Explanation: Pluralism explains policy-making as the result of bargaining and competition among multiple interest groups.
Correct answer: pluralism- A. Church leaders and educators
- B. The corporate rich only
- C. High ranking military officers only
- D. The military-industrial-governmental complex
Explanation: Mills's power elite consists of leaders at the top of the corporate, military and governmental hierarchies, often described as a…
Correct answer: The military-industrial-governmental complex- A. The proletariat
- B. The bourgeoisie
- C. The workers for the owners of the means of production
- D. The military
Explanation: In Marxist analysis, the bourgeoisie control the means of production and use that economic power to dominate the state and society.
Correct answer: The bourgeoisie- A. allows those representing minority views to try to become the majority
- B. favors those representing majority views
- C. allows those in positions of power to ignore the peoples wishes
- D. none of the above
Explanation: A democratic political process gives minority groups the opportunity to persuade voters and become the majority.
Correct answer: allows those representing minority views to try to become the majority- A. oversight
- B. ensuring that jobs are provided equally
- C. provide an opposition party to the administration in office
- D. none of the above
Explanation: Legislative oversight means examining and monitoring the actions of the executive branch and public agencies.
Correct answer: oversight- A. is a slow and painful process
- B. involves negotiation and compromise
- C. sometimes pits the executive branch against the interests of the members of states and districts
- D. all of the above
Explanation: Legislation commonly takes time because legislators negotiate and compromise, and conflicts may arise between executive priorities and the…
Correct answer: all of the above