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Students Zone - Self test questions
Use these questions both to test your detailed knowledge of each chapter. Make a note of your answers and then consult the answers page on this website. If you score less than 12 correct answers for any chapter, you probably need to spend more time re-reading and revising its contents.
CHAPTER 21: Raising and Allocating Resources
1. 'Public goods' are:
a) Goods provided by any public authority
b) Goods that are available to the public
c) Goods that can only be consumed collectively
2. Over the last century British government:
a) Has increased the range and volume of the goods and services it provides
b) Decreased the range of and volume of the goods and services it provides
c) Maintained a constant level of the range and volume of the goods and services it provides
3. Public goods:
a) Could with difficulty always be provided through market mechanisms
b) Could never be provided through market mechanisms
c) Could always be easily provided through the market if the political will existed
4. British governments:
a) Never borrow
b) Borrow on a moderate scale
c) Borrow on a large scale
5. Indirect taxation has:
a) Grown in importance in recent years
b) Remained constant in importance in recent years
c) Diminished in importance in recent years
6. Value Added Tax was introduced in:
a) 1773
b) 1973
c) 1997
7. The system of PAYE dates from:
a) The Crimean War
b) The First World War
c) The Second World War
8. Which one of the following is illegal:
a) Tax evasion
b) Tax avoidance
c) Tax management
9. Income transfers are:
a) An unimportant form of government resource allocation
b) A fairly important form of government resource allocation
c) The most important form of government resource allocation
10. In the last thirty years the proportion of national wealth dedicated to public spending has:
a) Increased greatly
b) Remained roughly constant
c) Fallen greatly
11. Taxation in Britain falls:
a) Mainly on the rich
b) Mainly on the poor
c) On very different groups depending on the particular tax
12. Public spending in Britain:
a) Mainly benefits the poor
b) Mainly benefits the rich
c) Benefits very different groups depending on which area of spending we consider.
13. 'Gatekeepers' in public provision regulate:
a) Who has access to services
b) The speed of access to services
c) The volume of services
14. Spending on higher education:
a) Clearly benefits the rich and the middle classes
b) Clearly benefits the poor
c) Benefits all sectors of society equally
15. Measuring the impact of public spending is:
a) Straightforward
b) Impossible
c) Difficult but possible
