Practice Public Debt (5.5) - Chapter 5: Public Finance - ICSE 12 Economics
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Public Debt

Practice - Public Debt

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

Define public debt.

💡 Hint: Think about what happens when a government borrows money.

Question 2 Easy

What are the two types of public debt?

💡 Hint: Consider where the money is borrowed from.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does public debt represent?

The total revenue of a government
Total money owed by a government
The amount of taxes collected

💡 Hint: Think about what happens when governments borrow money.

Question 2

True or False: Internal debt refers to borrowing from foreign countries.

True
False

💡 Hint: Focus on where the debt originates.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

You are analyzing a country's economic data. Its public debt is 70% of GDP, and it has high-interest rates. What might you conclude about the economy?

💡 Hint: Consider the relationship between debt, economic stability, and risk.

Challenge 2 Hard

A country has just issued bonds to finance a major project. Discuss potential risks and benefits of this decision.

💡 Hint: Reflect on the long-term implications of government borrowing.

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Reference links

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