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 8 of 21

  • A. participation in political decision making should be extended to religious leaders
  • B. the Socialist party must be in command of the economy
  • C. participation in political decision making should be extended to economic decision making
  • D. it is not necessary for everyone in a society to work

Explanation: Democratic socialism extends the democratic principle beyond elections, arguing that people should also participate in decisions about…

Correct answer: participation in political decision making should be extended to economic decision making
  • A. the value of the individual
  • B. rule by the elite
  • C. leadership of a charismatic leader
  • D. ideal hopes for a future society

Explanation: Democracy rests on the political equality and worth of individuals, giving citizens a role in choosing leaders and shaping public…

Correct answer: the value of the individual
  • A. trial and error
  • B. reinforcement
  • C. symbolic and physical interaction
  • D. prohibition

Explanation: Socialization transforms biologically dependent individuals into functioning members of society through symbolic communication and…

Correct answer: symbolic and physical interaction
  • A. important because they provide the initial role models
  • B. unimportant because models do not influence personality
  • C. constituted by governmental authorities who must be obeyed
  • D. similar to the ego of Freud,s theory

Explanation: Mead's significant others are the important people who first serve as role models and through whom children learn social expectations.

Correct answer: important because they provide the initial role models
  • A. Freud stopped at adolescence
  • B. Freud thought all conflicts were conscious
  • C. Freud saw conflicts with parents as predominant
  • D. Freud only worked with males

Explanation: Freud's psychosexual stages end around adolescence, whereas Erikson proposed eight psychosocial stages extending across the entire life…

Correct answer: Freud stopped at adolescence
  • A. the development of personality
  • B. physical(biological)development
  • C. the development of natural resources
  • D. the aging process or senescence

Explanation: Maturation refers to biologically programmed physical development, such as bodily growth and nervous-system development.

Correct answer: physical(biological)development
  • A. change to conform to the Chinese modal personality
  • B. the process of the Lookingglass
  • C. the process of resocialization
  • D. a severe anxiety attacks

Explanation: A person placed in a radically different social environment must discard or modify earlier norms and learn new ones, a process called…

Correct answer: the process of resocialization
  • A. ad hoc rules
  • B. specialization
  • C. unpredictability
  • D. lack of authority

Explanation: Bureaucracy depends on specialization, with duties divided among officials who possess defined areas of competence.

Correct answer: specialization
  • A. clearly stated goals and policies
  • B. no ranking of their members
  • C. little durability
  • D. no people in them

Explanation: A formal organization is deliberately structured around explicit objectives, rules, and policies.

Correct answer: clearly stated goals and policies
  • A. oligarchy
  • B. humanized bureaucracy
  • C. informal bureaucracy
  • D. scientific management

Explanation: An informal bureaucracy is an unofficial network of personal relationships and practices that develops alongside the formal administrative…

Correct answer: informal bureaucracy
  • A. accurate description of existing bureaucracies
  • B. idealized or exaggerated model of rational administration
  • C. explanation of elite domination
  • D. obviously false portrait of democratic administration

Explanation: Weber's ideal type was an analytical model that emphasized rational administration and need not have existed exactly in reality.

Correct answer: idealized or exaggerated model of rational administration
  • A. differentiation
  • B. segmentation
  • C. ranking
  • D. institutionalization

Explanation: Stratification systems generally involve social differentiation, ranking, and institutionalization, which make inequality structured and…

Correct answer: segmentation
  • A. improved DNA technology
  • B. findings of incompetent counsel
  • C. indications that prosecutors or police withheld information
  • D. all of the above

Explanation: Appeal courts may overturn death sentences when new DNA evidence emerges, counsel is found incompetent, or prosecutors and police withheld…

Correct answer: all of the above
  • A. the death penalty does act as a deterrent
  • B. the death penalty does not act as a deterrent
  • C. the death penalty is a sing of an uncivilized society
  • D. it is preferable to judge each criminal case individually

Explanation: The mainstream criminological conclusion is that available evidence does not establish the death penalty as a reliable deterrent against…

Correct answer: the death penalty does not act as a deterrent
  • A. the increase in organized crime
  • B. high unemployment rates
  • C. tax cuts instituted by the present administration
  • D. an increase in prison inmates

Explanation: Prisons, staffing, court proceedings, and inmate maintenance make the expansion of the prison population a major source of rising…

Correct answer: an increase in prison inmates
  • A. arson
  • B. robbery
  • C. white-collar crime
  • D. organized crime

Explanation: White-collar crime involves nonviolent financial or occupational offenses committed through deceit, concealment, or breach of trust.

Correct answer: white-collar crime
  • A. homogeneous societies
  • B. societies that value the social group over the individual
  • C. societies with a ruthless police force
  • D. only and b

Explanation: Homogeneous societies often have stronger shared norms, while societies that place the group above the individual may impose stronger…

Correct answer: only and b
  • A. drug addiction is a sustainable life style
  • B. drug users are not responsible for their actions
  • C. addicts choose to be addicted and hurt no one but themselves
  • D. society does care what happens to addicts

Explanation: “Victimless crime” is the controversial view that the participant voluntarily engages in the conduct and directly harms no one except…

Correct answer: addicts choose to be addicted and hurt no one but themselves
  • A. organized crime
  • B. crimes against persons
  • C. social order crimes
  • D. sins against religious teaching

Explanation: Gambling and prostitution are commonly classified as crimes against the public or social order because they are treated as violations of…

Correct answer: social order crimes
  • A. primary deviance
  • B. secondary deviance
  • C. tertiary deviance
  • D. labeling

Explanation: Becker’s labeling theory describes how authorities and society define a person as deviant and impose that identity through accusation and…

Correct answer: labeling