1. Inequality can be measured by a. Gini coefficient b. Laffer curve c. GDP d. Inflation 2. Public choice and democracy a. Can utilize median voter model b. Is obsolete and will be replaced by dictatorships c. Is based on majority that decides d. Can work well without the government and its power 3. Public goods are defined in theory of public finance as a. Non-rival b. Non-excludable c. Rival d. Excludable 4. Health care financing a. Has to solve the problem of health risks classification and adverse selection, e.g. by community rating in heath insurance or health taxation techniques b. Is much more expensive in the USA than anywhere in the world c. Can be financed fully by private health insurance without any regulation d. Is not important to manage nationally, everybody can finance his/her care how he/she can 5. The following tax bases/tax groups exist a. Wealth taxes b. Consumption taxes c. Bitcoin taxes d. Goverment expenditure taxes 6. Public debt a. Is absolute and relative b. Is diminished relatively by inflation and GDP growth c. Has to be repaid back at all costs very quickly d. Is today very low in most OECD countries, below 50 percent GDP 7. Government Debt service is a. A sum of interests that has to be paid annually from public debt b. A sum of all deficits that government made c. Transferred to selected citizens who are the richest d. A service to indebted people 8. According to their effect to different tax payers/incomes, taxes can be a. Progressive b. Agressive c. Regressive d. Hyperbolic 9. Which examples of taxes do you know (at least 4) ? 10. Negative externality is a. Pollution from nearby factory production b. Noise and traffic jam from commuting people in cars and buses c. Spreading knowledge from research and development d. Monopolistic behavior of company owning unique natural resources 11. Important milestones for fiscal policy and public finance development were a. Great Depression in 1930s b. Oil crisis in 1970s c. Olympic games in ancient Rome d. Housing and financial crisis in 2008 e. Flight of Gagarin in 1961 12. Define the fiscal multiplier and its role in fiscal policy Solution 1.The correct answer is: a. Gini coefficient Reason: Gini coefficient is the most commonly used measure of inequality.Its value ranges from 0 to 1. A value of 0 indicates represents perfect equality and a value of 1 indicate perfect inequality. P.S.: As per Chegg\'s policy, only one question is to be answered if nothing is being mentioned. Thanks!.

1. 1. Inequality can be measured by
a. Gini coefficient
b. Laffer curve
c. GDP
d. Inflation
2. Public choice and democracy
a. Can utilize median voter model
b. Is obsolete and will be replaced by dictatorships
c. Is based on majority that decides
d. Can work well without the government and its power
3. Public goods are defined in theory of public finance as
a. Non-rival
b. Non-excludable
c. Rival
d. Excludable
4. Health care financing
a. Has to solve the problem of health risks classification and adverse
selection, e.g. by community rating in heath insurance or health taxation
techniques
b. Is much more expensive in the USA than anywhere in the world
c. Can be financed fully by private health insurance without any regulation
d. Is not important to manage nationally, everybody can finance his/her
care how he/she can
5. The following tax bases/tax groups exist
a. Wealth taxes
b. Consumption taxes
c. Bitcoin taxes
d. Goverment expenditure taxes
6. Public debt
a. Is absolute and relative
b. Is diminished relatively by inflation and GDP growth
c. Has to be repaid back at all costs very quickly
d. Is today very low in most OECD countries, below 50 percent GDP
7. Government Debt service is
a. A sum of interests that has to be paid annually from public debt

2. b. A sum of all deficits that government made
c. Transferred to selected citizens who are the richest
d. A service to indebted people
8. According to their effect to different tax payers/incomes, taxes can be
a. Progressive
b. Agressive
c. Regressive
d. Hyperbolic
9. Which examples of taxes do you know (at least 4) ?
10. Negative externality is
a. Pollution from nearby factory production
b. Noise and traffic jam from commuting people in cars and buses
c. Spreading knowledge from research and development
d. Monopolistic behavior of company owning unique natural resources
11. Important milestones for fiscal policy and public finance development
were
a. Great Depression in 1930s
b. Oil crisis in 1970s
c. Olympic games in ancient Rome
d. Housing and financial crisis in 2008
e. Flight of Gagarin in 1961
12. Define the fiscal multiplier and its role in fiscal policy
Solution
1.The correct answer is:
a. Gini coefficient
Reason: Gini coefficient is the most commonly used measure of inequality.Its value ranges from
0 to 1. A value of 0 indicates represents perfect equality and a value of 1 indicate perfect
inequality.
P.S.: As per Chegg's policy, only one question is to be answered if nothing is being mentioned.
Thanks!