TRUE OR FALSE

1. Budget deficit is the main problem of Philippine public finance.

2. One of the main reasons why the government collects and spends taxes is to relieve many of the population from poverty.

3. The private view on public finance assumes that government operations are inefficient.

4. One of the roles of public fiscal finance is to manage inflation like the rising price of pork meat in the market.

5. The main source of public financing is external borrowing.

6. All sectors of the economy are given equal allocation in public spending.

7. The major instruments of fiscal policy is controlling money supply and interest rates.

8. In democratic societies, the government provides all the goods needed by the people.

9. Public finance focuses mainly on financing government expenditures.

10. Governments can collect taxes because of its legitimate power to do so as provided by laws.

11. Paying taxes increases disposable income.

12. Private goods cannot be taxed upon purchase as the government already collected income tax from the buyer.

13. Even if a person is not willing to pay, he or she can still receive public goods.

14. The reason national defense is provided as "public goods" is that it cannot be provided by the private market.

15. The "special amelioration find" (SAP) during the pandemic is a form of income redistribution.

16. Market failures are results of market inefficiencies,

17. Drugs must be tested before being sold in the market because the government's role is to find the best market for the products.

18. Negative effects like pollution cannot be penalized as these are expected from factories.

19. A good is rival when consumption by one person reduces the amount available to others.

20. Goods are excludable when benefits to others can be stopped.

21. Public goods are decided through elections.

22. The cost of public good to the next person is zero.

23. Public "bads" like robbery are some of the reasons for the establishment of public safety services like the police.

24. Education is a pure public good.

25. If all are free riders, there will be no public goods.

26. Public choice theory in the country can be analyzed through studying the election processes and outcomes.

27. All information about the candidate are presented during elections.

28. The Constitution provides the basis for public finance rules and regulations.

29. It is possible that a policy is passed without the voting consent of the population

30. Decision-making rules in public finance are the same for all countries.