Quiz on Pronouns – Financing Government Spending

Part 1: Fill in the Blanks

1. Every government must find revenue to finance ______spending.

2. The Ministry of Finance gets most of ______revenue by taxing ______.

3. I couldn’t buy what I wanted because ____ disposable income was too low.

4. ______all know that we should pay ______taxes when we earn our income.

5. You should read the tax law for ______.

6. ______can say with certainty ______is the right level of tariff protection?

7. To ______should I address my complaint over tax policy?

8. I want to avoid double taxation of _____ dividends.

9. ______is my the current marginal rate of income tax?

10. ______item on the invoice has its price shown on the right.

11. To ______should you apply to get the tax drawback?

12. I asked ______when he could send ______my tax refund.

13. ______tax rate is higher than the rate on other commodities.

14. A bond typically has coupons which determine ______price.

15. I affixed ______seal to the document to formally change owners.

Part 2: Use the correct pronoun in the sentence

1. Government can use bonds to finance (its/it’s/their) expenditure.

2. The Central Bank affects the purchasing power of (our/ours/yours) money by

affecting the price level.

3. Some people say (theirs/their’s/their) only goal should be price stability.

4. The bond is (my/mine/myself) and all (its/it’s/it) income accrues to (your/his/me).

5. The price is sometimes lower than (its/it/it’s).

6. The project is expected to fund (their/mine/itself).

7. The price of the bond is lower than (her/our/its) face value.

8. (It’s,Its,It) not expected to remain above equilibrium.

9. (It’s,Its,It) price is not expected to remain above equilibrium.

10. (Them/Their/Those) that believe in small government feel people should take care of

(their/themselves/those).

11. Some people claim that the national debt is not important since (we/us/our) owe it to

(himself/themselves/ourselves).

12. Nothing you say can change (mine/we/our) opinion.

13. If foreigners own a large part of the national debt, then (their/them/it) can becomes a

burden on the taxpayer.

14. If I want (you/yourself/your) opinion, then I will ask for (him/you/it).

15. Usually conservatives do not like a large fiscal deficit, unless (they/them/it) is being

used to finance greater defense expenditures.

Part 3: Find and correct the grammatical errors in the following sentences

1. Suppose that only taxes to government.

2. One can in the stock market, and one can in land and,

but these all substantial risk.

3. The government that each year the and interest on the

debt outstanding would increase, to even more bond sales.

4. Suppose that the government used theof money to its

.

5. The was an high of inflation, which economists

hyperinflation.

6. We that each method by is undesirable, but with the proper mixture of

, government can have a stable supply of revenue to finance spending.

7. issued bonds are sold in the bond market by or

.

8. The of bonds will with the of interest.

9. If price , then its of return .

10. If government only money to spending, then inflation

will .

11. If government only bonds to its, then interest

rates.

12. If government only its spending, then the economy a

asset.

13. a tax policy it is the burden of the tax

.

14. claim that if are reduced, tax revenue.

15. Government usually short term current expenditures, while it

long term public investment projects.

16. can or .

17. Seniorage to revenue from the of .

18. The of revenue from .

19. Governments can their by periodic .

20. Sometimes receive foreign their.