Fiscal policy：練習問題

Suppose a government is facing a persistent budget deficit and aims to reduce it. Which combination of fiscal policy measures would most effectively help to achieve this aim?

A government decides to implement a fiscal policy by significantly increasing its spending on education and healthcare services. Which macroeconomic aim is this policy primarily intended to achieve?

A government decides to switch from a system of progressive income tax to a flat-rate (proportional) income tax system that collects the same total amount of tax revenue. What is the most likely economic consequence of this change?

Which of the following is classified as an indirect tax?

Which of the following describes a regressive tax system?

Define the term regressive tax and provide one example of such a tax.

Identify two reasons why a government might choose to increase its spending on public infrastructure, such as roads and bridges.

Explain the difference between capital expenditure and current expenditure in a government budget, providing one example for each.

Governments use various forms of taxation to fund public services and influence economic behavior.

(a) Distinguish between direct taxes and indirect taxes, providing one example of each.
(b) Explain one reason why a government might increase taxes on demerit goods, such as tobacco or alcohol.

In many economies, the government uses a progressive tax system for personal income.

(a) Explain the difference between a progressive tax and a regressive tax.
(b) Analyze how a progressive tax system can help a government achieve the macroeconomic aim of redistribution of income.