Free Public Finance MCQs with Answers

• A. discretionary
• B. uncontrollable
• C. balanced
• D. unavoidable

Explanation: Spending required because of commitments made in earlier years is generally called uncontrollable or mandatory spending, since the…

• A. fiscal policy
• B. monetary policy
• C. incomes
• D. revenue policy

Explanation: Fiscal policy uses government taxation and expenditure to influence aggregate demand, employment and economic activity.

• A. mediate among conflicting economic goals
• B. plan to ensure the correct mix of supply and demand
• C. ensure that everyone is a sinner in the economy
• D. none of the above

Explanation: Public policy must balance objectives such as growth, stability, efficiency, and equity, which may conflict with one another.

• A. firms
• B. households
• C. markets
• D. central authorities

Explanation: Public government agencies exercise authority on behalf of the state and are therefore classified as central authorities in the economic…

• A. public
• B. private
• C. common law
• D. communal

Explanation: Property owned by the state for the benefit or use of the people is public property.

• A. the press and politicians
• B. the president and Congress
• C. the two political parties
• D. all of the above

Explanation: A symbiotic relationship is one in which each side benefits from the other, as political institutions, parties and the press exchange…

• A. money promised for campaigns
• B. money used to purchase air time
• C. money given after the election
• D. none of the above

Explanation: Soft money refers to largely unregulated contributions made to political parties, often for party-building activities, and none of the…

• A. all political and social issues
• B. the major issues like war and peace
• C. the election of all national officials
• D. access to Supreme Court appointments

Explanation: Mills argued that a small power elite dominates decisions involving the most consequential national matters, especially war and peace.

• A. a charismatic leader is available
• B. a large portion of the electorate is dissatisfied with the other candidates
• C. the nation experiences severs economic recession or depression
• D. new political ideologies emerge

Explanation: Third parties usually gain support when many voters are dissatisfied with the candidates or policies offered by the two major parties.

• A. in accord with the agenda of the rank and file
• B. more liberal than the rank and file
• C. more conservative than the rank and file
• D. unaware of the concerns of the rank and file

Explanation: Interest-group leaders are often more politically active and ideologically committed than ordinary members, and are commonly described as…

• A. injecting partisan ideologies into political parties
• B. creating splinter parties
• C. the dissemination of biased information
• D. stifling minority voices

Explanation: Interest groups may present selective or biased information to advance their causes, making dissemination of bias a recognized drawback.

• A. money
• B. mass media
• C. leadership
• D. all of the above

Explanation: Salisbury identified leadership as the key factor that converts general awareness of an issue into sustained organization and collective…

• A. what the government does
• B. what the government fails to do
• C. a plan of action
• D. all of the above

Explanation: Public policy includes both governmental action and deliberate inaction, and can be understood as a plan or course of action.

• A. mass media
• B. socialization
• C. social class
• D. all of the above

Explanation: Voting behaviour is shaped by political learning through socialization, information from mass media and the interests associated with…

• A. the demands of the masses
• B. the values of the elites
• C. the ideals of the society
• D. the compromises necessary to temper ideals with reality

Explanation: Elitist theory holds that policy is shaped mainly by people who possess wealth, status, or political influence, so it reflects elite…

• A. power is in the hands of a small group of individuals
• B. Wall street brokers and other bankers hold the effective reins of government
• C. power is diffused among numerous interest groups who compete and compromise on the decision-making process
• D. the fewer interest groups exist the greater the stability of the political system

Explanation: The broker-rule or pluralist view sees politics as competition among many interest groups, with policy emerging through bargaining and…

• A. political control of the media
• B. media subversion of government
• C. nonexistent
• D. symbiotic and adversarial

Explanation: Politicians need the media to communicate with and influence voters, while the media need politicians and political events for news…

• A. attitude
• B. action
• C. opinion
• D. conviction

Explanation: An attitude is a predisposition or settled tendency to view an issue in a particular way.

• A. state without a nation
• B. nation without a state
• C. nation split among several states
• D. state split among several nations

Explanation: A nation is a people sharing a collective identity, while a state is a sovereign political territory.

• A. present official candidates to the electorate
• B. have the goal of complete control of the government
• C. put their names on ballots
• D. are only accountable to themselves

Explanation: Interest groups seek to influence government rather than nominate candidates or take complete control of government.