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Public Finance and Social Justice

Description: This quiz evaluates your understanding of the principles and practices of Public Finance and Social Justice.
Number of Questions: 15
Created by:
Tags: public finance social justice taxation government spending economic inequality
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What is the primary objective of progressive taxation?

  1. To reduce the tax burden on low-income earners.

  2. To promote economic growth.

  3. To redistribute wealth and reduce income inequality.

  4. To fund government programs and services.


Correct Option: C
Explanation:

Progressive taxation aims to ensure that individuals with higher incomes pay a larger share of taxes, thereby reducing income inequality and promoting social justice.

Which of the following is a common criticism of regressive taxation?

  1. It disproportionately burdens low-income earners.

  2. It stifles economic growth.

  3. It leads to inflation.

  4. It creates budget deficits.


Correct Option: A
Explanation:

Regressive taxation is criticized for placing a disproportionate tax burden on low-income earners, potentially exacerbating income inequality.

What is the concept of 'ability to pay' in the context of taxation?

  1. The amount of money an individual has in their bank account.

  2. The value of an individual's assets.

  3. The income an individual earns.

  4. The individual's capacity to contribute to the public purse.


Correct Option: D
Explanation:

The concept of 'ability to pay' refers to an individual's capacity to contribute to the public purse based on their income, wealth, or other economic factors.

Which of the following is a common argument in favor of government spending on public goods?

  1. It promotes economic growth.

  2. It reduces income inequality.

  3. It corrects market failures.

  4. All of the above.


Correct Option: D
Explanation:

Government spending on public goods is often justified on the grounds that it promotes economic growth, reduces income inequality, and corrects market failures.

What is the term used to describe the situation where the benefits of a government program outweigh its costs?

  1. Economic efficiency.

  2. Social justice.

  3. Public good.

  4. Pareto efficiency.


Correct Option: D
Explanation:

Pareto efficiency is a concept in economics that describes a situation where it is impossible to improve the well-being of one individual without harming another.

Which of the following is a common argument against government intervention in the economy?

  1. It can lead to market distortions.

  2. It can stifle economic growth.

  3. It can result in unintended consequences.

  4. All of the above.


Correct Option: D
Explanation:

Common arguments against government intervention in the economy include the potential for market distortions, stifled economic growth, and unintended consequences.

What is the term used to describe the situation where a government program benefits a small group of individuals at the expense of the majority?

  1. Rent-seeking.

  2. Special interest legislation.

  3. Corporate welfare.

  4. All of the above.


Correct Option: D
Explanation:

Rent-seeking, special interest legislation, and corporate welfare are all terms used to describe situations where a government program benefits a small group of individuals at the expense of the majority.

Which of the following is a common criticism of the welfare state?

  1. It can create a culture of dependency.

  2. It can stifle economic growth.

  3. It can lead to higher taxes.

  4. All of the above.


Correct Option: D
Explanation:

Common criticisms of the welfare state include the potential for creating a culture of dependency, stifling economic growth, and leading to higher taxes.

What is the term used to describe the situation where a government program has the opposite effect of its intended purpose?

  1. Unintended consequences.

  2. Perverse incentives.

  3. Moral hazard.

  4. All of the above.


Correct Option: D
Explanation:

Unintended consequences, perverse incentives, and moral hazard are all terms used to describe situations where a government program has the opposite effect of its intended purpose.

Which of the following is a common argument in favor of a universal basic income (UBI)?

  1. It can reduce poverty and inequality.

  2. It can promote economic growth.

  3. It can increase individual freedom and autonomy.

  4. All of the above.


Correct Option: D
Explanation:

Common arguments in favor of a universal basic income include its potential to reduce poverty and inequality, promote economic growth, and increase individual freedom and autonomy.

What is the term used to describe the situation where a government program benefits a large group of individuals at the expense of a small group?

  1. Social justice.

  2. Progressive taxation.

  3. Redistribution of wealth.

  4. All of the above.


Correct Option: C
Explanation:

Redistribution of wealth is a term used to describe the situation where a government program benefits a large group of individuals at the expense of a small group.

Which of the following is a common argument against a universal basic income (UBI)?

  1. It can be expensive to implement.

  2. It can discourage people from working.

  3. It can lead to inflation.

  4. All of the above.


Correct Option: D
Explanation:

Common arguments against a universal basic income include its potential cost, the possibility of discouraging work, and the risk of inflation.

What is the term used to describe the situation where a government program is designed to benefit a specific group of individuals or organizations?

  1. Targeted program.

  2. Means-tested program.

  3. Categorical program.

  4. All of the above.


Correct Option: D
Explanation:

Targeted program, means-tested program, and categorical program are all terms used to describe a government program designed to benefit a specific group of individuals or organizations.

Which of the following is a common argument in favor of targeted programs?

  1. They can be more efficient and cost-effective.

  2. They can ensure that benefits are directed to those who need them most.

  3. They can help reduce poverty and inequality.

  4. All of the above.


Correct Option: D
Explanation:

Common arguments in favor of targeted programs include their potential for efficiency, cost-effectiveness, ensuring benefits reach those in need, and reducing poverty and inequality.

What is the term used to describe the situation where a government program is designed to benefit all citizens equally?

  1. Universal program.

  2. Entitlement program.

  3. Social insurance program.

  4. All of the above.


Correct Option: D
Explanation:

Universal program, entitlement program, and social insurance program are all terms used to describe a government program designed to benefit all citizens equally.

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