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Free CFA Economics Practice Questions & Answers

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Question 1621

A criticism of active fiscal policy is that:

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Question 1622

Despite long lags, capital spending is valuable because:

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Question 1623

Indirect taxes are often used for social purposes because:

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Question 1624

Direct taxes affect behavior because they:

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Question 1625

Vertical equity means:

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Question 1626

Horizontal equity means:

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Question 1627

A tax system that is too complex violates the principle of:

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Question 1628

A tax that treats similar taxpayers differently violates:

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Question 1629

A tax that places a heavier burden on the rich supports:

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Question 1630

A regressive tax means:

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Question 1631

A tax that raises insufficient revenue violates:

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Question 1632

A tax that is easy to evade violates:

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Question 1633

A tax that distorts investment decisions violates:

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Question 1634

A tax that is perceived as unfair violates:

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Question 1635

A tax that is too complex may reduce compliance, violating:

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Question 1636

A tax that discourages saving may violate:

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Question 1637

A tax that treats unequal taxpayers equally violates:

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Question 1638

A tax that treats equal taxpayers differently violates:

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Question 1639

A major argument for worrying about national debt is that high debt may:

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Question 1640

High national debt may lead to inflation if:

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Question 1641

Crowding out occurs when:

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Question 1642

Transfer payments are used to:

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Question 1643

Capital expenditure increases:

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Question 1644

Government spending on defense is justified because:

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Question 1645

Government spending on welfare is justified because:

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Question 1646

A desirable tax policy attribute is simplicity, meaning:

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Question 1647

Revenue sufficiency means:

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Question 1648

A conflict in tax policy arises because:

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Question 1649

Supply-side economists argue that high income taxes:

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Question 1650

A major tax reform debate concerns whether:

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Free CFA Economics Practice Questions & Answers

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Thank you