PUBLIC FINANCE
1. Change in government spending is less direct than change in net taxes FALSE
2. The na8onal debt is flow variable measuring net accumula8on of past deficits FALSE
3. Increase in government purchases or in transfer payments increase real GDP demanded, and an
increase in net taxes decrease real GDP demanded TRUE
4. If policy makers cannot predict the course of the economy, they should not try to fine-tune it with
montary or fiscal policy TRUE
5. Tax cuts are the best discre8onary fiscal policy tool to boost aggregate supply FALSE
6. The long-run Phillips curve is based on expected infla8on rate and reflects an inverse rela8onship
between the infla8on rate and the unemployment rate TRUE
7. The short-run Phillips curve is based on expected infla8on rate and reflects an inverse rela8onship
between the infla8on rate and the unemployment rate FALSE
1. If you believe that classical economist were right about the way the economy works in order to
fight present recession you would to:
a) Increase government spending
b) Increase budget deficit
c) Run balanced budget
d) Decrease taxes
e) Answers (a), (b) and (c)
f) Answers (a) and (d)
2. If you believe that classical economist were right about the way the economy works in order to
fight present undesired level of economical expansion you would to:
a) Increase government spending
b) Increase budget deficit
c) Government should do nothing
d) Increase taxes
e) Answers (a),(b) and (d)
f) Answers (a) and (d)
3. ContracAonary fiscal policy:
a) Aims to close an expansionary gap
b) Aims to close an contrac8onary gap
c) Aims to further increase
d) Aims to further increase
e) Has no impact on expansionary
f) Has no impact on contrac8onary
4. Expansionary fiscal policy:
a) Aims to close an expansionary gap
b) Aims to further increase an expansionary gap
c) Has no impact on expansionary gap
d) Has no impact on contrac8onary gap
e) None of the above
5. ..of automaAc stabilizers, GDP:
a) ..to fluctuate more than it otherwise would
b) ..to fluctuate less than it otherwise would
c) ..income varies propor8onately more than does GDP
d) Automa8c stabilizers have no impact on GDP
e) Answers (a) and (b)
f) Answers (a) and (c)
6. What of the following belongs to discreAonary fiscal policy measure:
a) Transfer payments
b) Federal income tax
c) Temporary fax cuts as a part of plan to fight recession
d) Fiscal s8mulus
e) Answers (a) and (d)
f) Answers (a), (c) and (d)
7. DiscreAonary fiscal policy is:
a) A demand-management policy: the objecIve is to increase or decrease aggregate demand to
smooth economic fluctuaIons
b) A supply-management policy: the objec8ve is to increase or decrease aggregate supply to
smooth economic fluctua8ons
c) Neutral in regard to aggregate demand and supply
d) A demand-management policy: the objec8ve is to increase or decrease supply demand to
smooth economic fluctua8ons
e) A supply-management policy: the objec8ve is to increase or decrease aggregate demand to
smooth economic fluctua8ons
f) None of the above
8. What of the alternaAve usage of budget deficits could enhance producAvity in the long run:
a) Farm subsidies
b) Higher wages in government agencies
c) Investments in educaIon of workforce
d) Higher re8rement benefits
e) Answers (a) and (c)
f) Answers (c) and (d)
9. If you sell government securiAes to foreign investors:
a) That will have no real impact on debt burden of future genera8ons
b) That will decrease debt burden of future genera8ons
c) That will increase debt burden of future genera8ons but future debt service payments will
remain in the country
d) That will increase debt burden of future generaIons
e) That will decrease debt burden of future genera8ons but future debt service payments will no
longer remain in the country
f) None of the above
10. When it comes to comparing monetary and fiscal policies, which lags are more present in the case
of monetary policy:
a) Decision making lag
b) Implementa8on lag
c) Effec8veness lag
d) Answers (a), (b) and (c)
e) Answers (b) and (c)
f) None of the above
11. What of the following is true:
a) The ac8ve approach relies on natural market forces and automa8c stabilizers to close
expansionary gap through a decrease in the short run aggregate supply curve
b) The passive approach relies on natural market forces and automa8c stabilizers to close
expansionary gap through a decrease in the short run aggregate supply curve
c) In the long run, passive approach results in a lower price level
d) In the long run, passive approach results in a higher price level
e) Answers (b) and (d)
f) Answers (b) and (c)
12. Time inconsistency problem arises:
a) When policy makers have an incenIve to announce one policy to shape expectaIons but then
pursue a different policy once those expectaIons have been formed and acted on
b) When people form expecta8ons based on all available informa8on, including the likely future
ac8ons of government policy makers
c) When central bank announce and execute set of tough measures to reduce high infla8on
d) When expansionary policies have no effect on output or employment, because they were
an8cipated by general public
e) Answers (a) and (d)
f) Answers (a), (b) and (c)
13. Chose true statement:
a) Decreased spending with unchanged taxes leads to budget deficit, that reduces savings, leading
to higher interest rates, that reduce private investments
b) Increased spending with unchanged taxes leads to budget deficit, that reduces savings, leading
to lower interest rates, that increases private investments
c) Increase spending with unchanged taxes leads to budget deficit, that reduces savings, leading
to higher interest rates, that reduce private investments
d) Increased spending with unchanged taxes leads to budget deficit, that increases savings, leading
to higher interest rates, that increase private investments
e) Increased spending with unchanged taxes leads to budget surpluses, which reduces savings,
leading to lower interest rates, that reduces private investments
f) None of the above
14. Employee s gross income in FB&H is 2500.00 BAM. Calculate the take home pay (net income) if
the tax rate is 10%. Also, social security contribuAons paid by the employee account to 31% and
social security contribuAons paid by employee amount to 10,5% of the salary. The amount of
personal allowance is 300.00BAM and an employee has a supporAng spouse (150,00BAM
allowance) and one child (150,00BAM allowance).
a) 775,00
b) 1725
c) 1612,5
d) 600,00
e) 1125,00
f) 112,5
15. VAT rate is 17%. Manufacturer in phase 1 has purchased material at the amount of 3000,00BAM
and added value of 625,00BAM. The wholesale in phase 2 has output value of 4725BAM. The
retail in phase 3 total product value with VAT of 9072,00BAM. Total VAT is:
a) 827,77
b) 3633,98
c) 3570,99
d) 882,26
e) 607,07
f) None of the above
16. According to recent trends, highest share in federal budget belongs to:
a) Servicing the na8onal debt
b) RedistribuIon of income through social security, welfare etc..
c) Financing defense
d) Financing educa8on
e) Financing administra8on
f) None of the above
17. In case of recession, what would be the best acAon in order to increase GDP
a) Increase in government spending
b) Decrease in government spending
c) Increase in net taxes
d) Decrease in net taxes
e) Decrease in investments
f) Answers (a) and (c)
18. From the US history of the past 90 years, what theory best describes behavior of government
when it comes to managing budget:
a) Annually balanced budget
b) FuncIonal finance
c) Cyclically balanced budget
d) Neutral budget policy
e) Answers (a) and (d)
f) Answers (a) and (c)
19. What of the following is true:
a) In the long run monetary policy affect the economy largely by influencing the interest rate
b) In the short run monetary policy affects the economy largely by influencing the interest rate
c) In the short run, changes in money supply affect the price level
d) Both (a) and (c)
e) Both (b) and (d)
20. The most important step(s) in the process of creaAon of creaAng money through excess reserves
is/are:
a) Ini8al FEDs injec8on of fresh reserves into the banking system
b) Increase in checkable deposits
c) Increase in required reserves
d) Increase in loans
e) Both (b) and (c)
f) Both (c) and (d)
21. The rate at which money exchange for goods and service is called:
a) The purchasing power of money
b) Unit of account
c) Store of value
d) Seigniorage
e) Income
f) Wealth
22. If savings bank is also a depository insAtuAons as well it can be properly named as:
a) Credit union
b) Commercial bank
c) ThriU insItuIons
d) Investment bank
e) Financial company
f) Hedge fund
23. What of the following M1 elements serve as a medium exchange, a unit of account and a store of
value
a) Savings deposits
b) Time deposits
c) Money market mutual fund accounts
d) Government bonds
e) Both (a) and (b)
f) None of the above
24. What of the following is TRUE:
a) In the long, monetary policy affects the economy largely by influencing the interest rate
b) In the short run, monetary policy affect the economy largely by influencing the interest rate
c) In the long run, monetary policy affect the price level
d) In the short run, monetary policy affect the price level
e) Both (a) and (d)
f) Both (b) and (c)
25. What is the amount of the maximum deposit if the a vista deposits are 30.000,00 Ame deposits
are 20.000 and the credit mulAplier is 3?
a) 60.000,00
b) 90.000,00
c) 200.000,00 … ( 30.000 + 20.000 ) * 3+1
d) 50.000,00
e) 20.000,00
f) None of the above
26. If marginal propensity to consume is 06 and government decreases net taxes for 0.1 trillion than
GDP will:
a) Increase for 0.15 trillion ( GDP = change in tax * -MPC / 1- MPC)
b) Decrease for 0.15 trillion
c) Decrease for 2.5trillion
d) Increase for 2.5 trillion
e) Increase for 0.25 trillion
f) Decrease for 0.25 trillion
27. Izdvojite cista javna dobra:
• Sistem nacionalne odbrane finansiran od strane drzave
• Sistem zas8te od pozara finansiran od strane drzave
28. RestrikAvna fiskalna poliAka sprovodi se:
smanjenjem poreza
29. Prema Jeze-u, dvostruko oporezivanje se moze javiA u slucajevima:
• U federa8vno uredjenim drzavama
• Medjunarodno dvostruko oporezivanje
30. Kao ministrica finansija pred parlamentom trebate prezentovaA plan fiskalne odrzivosA u
akAvnosAma izlaska iz recesije. Prilikom njegovog sastavljanja na koji nacin cete primijeniA osnovni
princip pokrica javnih rashoda, oslanjajuci se na savremenu teoriju I istrazivanja u oblasA javnih
finansija:
• prihva8t cete opciju javnog zaduzenja u svrhu pokrivanja vanrednih rashoda
• uvodjenjem novih poreza tj.vanrednih prihoda, pokrivat cete vanredne rashode
31. Sta od navedenog pripada tehnici javnog duga:
Poslovne emisije, poslovi amor8zacije javnog duga, poslovi konverzije javnog duga
32. Vlada BIH je u budzet za 2014. Predvidjela stavku za porodiljsko odsustvo kao i prethodnih pet
godina. Ocekuje se da rentabilnost pomenuAh rashoda ni ove godine ne bude u pozivitnoj zoni. U koje
grupe rashoda spade opisana stavka?
Redovni javni rashodi, neproduk8vni javni rashodi i transferni javni rashodi.
33. Izdvojite primjere utaje poreza:
• Placanje roba i usluga koje se vrse u gotovini, a ne preko platnog prometa
• Dvostruko vodjenje poslovnih knjiga
34. Ako se svi prihodi kompanije oporezuju odvojeno tada je rijec o:
Cedularnom sistemu poreza na dobit preduzeca
35. If you believe that classical economist were right about the way that economy works, in order to
fight present recession you would to:
a) Increase government spending
b) Increase budget deficit
c) Run balanced budget
d) Decrease taxes
e) Answers (a), (b) and (d)
f) Answers (a) and (d)
(ILI C ILI D)
36. In the tale of twin deficits, what of the following is true:
a) Higher budget deficit leads to higher trade deficit
b) Higher trade deficit leads to higher budget deficit
c) Higher budget deficit leads to lower trade deficit
d) Higher trade deficit leads to lower budget deficit
e) Answers (a) and (d)
f) Answers (a)and (b)
37. In the long run we should invest in EDUCATION.