Question 1
What is not likely to be included in a government budget?
A
anticipated tax revenue
B
changes in exchange rates
C
forecast government borrowing
D
proposed government spending
Question 2
[Maximum number: 1]
Which role is not performed by a government?
A
paying dividends to shareholders
B
promoting international trade agreements
C
providing state benefits
D
subsidising merit goods
A
Question 3
[Maximum number: 1]
A government's spending currently equals its revenue. The government decides to decrease its spending.
What is the most likely effect of this in the short run?
A
a budget deficit
B
a budget surplus
C
an increase in output
D
an increase in tax revenue
B
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