may be defined as the aspect of economics which deals with government revenue and expenditure.

Here are the solutions to the objective questions: 1. a. Public finance Public finance is the branch of economics that studies the role of the government in the economy, focusing on government revenue (taxation) and government expenditure. 2. c. Fiscal policy Fiscal policy refers to the use of government spending and taxation to influence the economy, aiming to achieve macroeconomic goals like economic growth, employment, and price stability. 3. a. Creation of employment A key objective of fiscal policy is to stimulate economic activity, which in turn leads to the creation of employment opportunities. 4. b. Government expenditure Government expenditure encompasses all spending by public authorities at various levels of administration within a country. 5. a. Incidence of taxation The incidence of taxation determines who ultimately bears the financial burden of a tax, which may not always be the party legally obligated to pay it. 6. True The tax base is indeed the specific item, asset, or activity upon which a tax is levied, such as income, property, or sales. 7. c. Increase level of prices A country's budget aims to achieve objectives like resource allocation and communicating economic policies. Increasing the level of prices (inflation) is generally an undesirable outcome, not an objective. 8. c. Treasury bills Treasury bills are short-term debt instruments issued by the government to finance its short-term needs, including budget deficits. Country bonds are also a way, but Treasury bills are a very common instrument. 9. b. 2 The two major types of tax are direct taxes (e.g., income tax) and indirect taxes (e.g., sales tax). 10. a. Failure to fulfill civic responsibility One significant difficulty in tax collection arises from the failure to fulfill civic responsibility, leading to tax evasion and non-compliance. That's 2 down. 3 left today — send the next one.