Public Economics Test

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Question 1. What is studying economics of the public sector?
1. Public economics studies the laws and practical problems that are associated with the production of public goods and collective, economic mechanisms to achieve social goals and non-market interactions of interest.
2. Public Economics examines the economic mechanisms to achieve social goals.
3. Public economics studies the laws and practical problems that are associated with the production of public and collective goods.


Question 2. What is the public sector?
1. The public sector is such an area of the economy, or that part of the economic space, where: the market does not work or only partially valid, and therefore dominates the non-market method of coordination; produced and consumed not private, and public goods; economic balance between the consumers of public goods by the state, local authorities and voluntary and community organizations with the appropriate social institutions (especially with the help of fiscal policy).
2. The public sector is an aggregate of the economy of resources at the disposal of the state - a state organization, budget revenues and expenditures.
3. The public sector operates in the forms of state-owned enterprises and institutions, taxation and public expenditure programs.


Question 3. What is the main difference between the organizations of the private and public sectors of the economy?
1. The main difference between the organizations of the private and public sector of the economy is that public sector organizations are non-commercial (ie, do not pose a major problem to make a profit), and the dominant role the state plays in the public sector.
2. The main difference between the organizations of the private and public sector of the economy is that public sector organizations are commercial that is, pose a major challenge to make a profit.
3. The main difference between the organizations of the private and public sector of the economy is that in the public sector, the government does not play a dominant role.


Question 4: What is special about the economy of the public sector?
1. The feature of the public sector of the economy is that it treats the state in the total number of economic operators, it brings out the logic of economic behavior and focuses on the specific economic benefits, the delivery of which takes on the public sector, and on the efficiency of the production of these goods.
2. Public Economics aims to explain how the citizens´ preferences are transformed into objectives pursued by the state, the state is seeking the means to achieve these goals, it spends these funds and thereby its economic activities may become more rational.
3. Features of the economy of the public sector - the state is one of the subjects of economic activity, although it has one difference: the government and its agencies have the right of coercion in the framework and on the basis of laws, justified from the point of view of economic efficiency and social justice.

Question 5. What is the role of the state in the economy of the public sector?
1. The State, like entrepreneurs and non-profit organizations operating in the market environment, and the need for its participation in the economic life occurs only when the free action of market forces does not ensure the optimum placement and use of resources.
2. The economic role of the state in the modern world is increasing due to the growing scale and complexity of the structure of the market economy. The level of existing policies.
3. The state can through legal, administrative and economic
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