Select the best option:

(1) How it is called the situation in which public expenditures are higher than tax revenue in a given year?

a) a budget deficit

b) a trade surplus

c) a budget surplus

d) national debt

(2) A balance budget requires:

a) public expenditures are equal to government revenues

b) public expenditures are greater than government revenues

c) both inflation and unemployment are reduced

d) public expenditures are less than government revenues

(3) Public Finance is the study of:

a) the influence of public policies on economic growth

b) the effect on individuals of economics and social public policies

c) the way scarce resources are used by the private sector

d) government finances

(4) Those who believe that elected policy makers should provide paternalist public policies tend to favor a public sector that in relative terms is:

a) big

b) huge

c) small

d) medium

(5) Market economic functions are defined by human:

a) engineering

b) action

c) design

d) effort

(6) A common measure if the size of public sector is:

a) credit and social security

b) tax revenues

c) public expenditures

d) economic and social regulations