Chapter 17 Random
A ________________________________ is calculated as a flat percentage of income earned, regardless of level of income.
a) proportional tax
b) progressive tax
c) regressive tax
d) estate and gift tax
When increasing oil prices cause aggregate supply to shift to the left, then:
a) unemployment and inflation increase.
b) unemployment and inflation decrease.
c) unemployment decreases and inflation increases.
d) unemployment increases and inflation decreases.
If South Dakota’s governor reports a budget surplus in 2011, that state government likely:
a) increased the proportional tax level.
b) increased the corporate income tax rate.
c) received more in taxes than it spent in that year.
d) equalized spending and taxes in that year.
If a country’s GDP increases, but its debt decreases during that year, then the country’s debt to GDP ratio for the year will _______________ in proportion to the magnitude of the changes.
a) decrease because its debt decreased
b) increase or decrease
d) increase because GDP increased
A __________________________ policy will cause a greater share of income to be collected from those with high incomes than from those with lower incomes.
a) regressive tax
b) excise tax
c) proportional tax
d) progressive tax
By June, 2010, the U.S. government owed $13.6 trillion dollars ________________ that, over time, has remained unpaid.
a) from decreases in corporate tax
b) in accumulated government debt
c) from decreases in income tax
d) from decreases in excise tax
In 2010, Microsoft will pay corporate income tax to the federal government based on the company’s __________________.
a) excise profits
b) proportional tax rate
c) optional tax rate
d) corporate profits
When the government passes a new law that explicitly changes overall tax or spending levels, it is enacting:
a) fiscal policy.
b) progressive fiscal policy.
c) regressive fiscal policy.
d) discretionary fiscal policy.
During a recession, if a government uses an expansionary fiscal policy to increase GDP, the:
a) aggregate supply curve will shift to the left.
b) aggregate supply curve will shift to the right.
c) aggregate demand curve will shift to the right.
d) aggregate demand curve will shift to the left.
Chapter 17 problems
A government collects $700 billion annually in tax revenue. Each year it allocates $130 billion to interest payments that it must pay on its accumulated debt. What percentage of annual tax revenue is allocated to make these interest payments?
If the state of Washington’s government collects $75 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be a:
a) budget deficit.
b) decrease in proportional taxes.
c) decrease in payroll tax.
d) budget surplus.
If government tax policy requires Jane to pay $25,000 in taxes on annual income of $200,000 and Mary to pay $10,000 in tax on annual income of $100,000, then the tax policy is:
Chapter 18 Random Questions
A ___________________________________ can lead to disruptive economic patterns and heavy strains on a country’s banking and financial system.
a) prolonged period of trade surpluses
b) prolonged period of budget surpluses
c) sustained pattern of large budget deficits
d) sustained pattern of large trade deficits
In the U.S. economy, the offsetting effects of private saving compared to government borrowing are typically noted as being represented by which of the following ratios?
a) much less than one-to-one
b) slightly more than two-to-one
c) much more than two-to-one
d) slightly less than one-to-one
An additional investment in human capital, especially for the low-income nations of the world, will likely directly increase which of the following?
a) consumer orientated spin-offs
b) increased levels of R&D spending
c) highly qualified teachers
d) productivity and economic growth
A reduction in government borrowing can:
a) give private investment an opportunity to expand.
b) crowd out private investment in human capital.
c) increase the interest rate.
d) decrease the incentive to invest.
In most developed countries, the government plays a large role in society’s investment in human capital through _________________________.
a) the education system
b) tax incentives
c) direct spending
d) private sector R&D
When a business firm makes an investment in physical capital, what is that investment subject to?
a) political orientated incentives
b) economic output and productivity
c) the discipline of the market
d) state and local government incentives
A ____________________________ is one economic mechanism by which government borrowing can crowd out private investment.
a) higher interest rate
b) deficit decrease
c) larger trade surplus
d) smaller trade surplus
If David Ricardo’s theory holds completely true, then any change in budget deficits or budget surpluses would be completely offset by which of the following?
a) a corresponding change in private saving
b) a sustained pattern of trade imbalances
c) a dependence on inflows of capital
d) a change in currency exchange rates
A prolonged period of budget deficits may lead to ___________________.
a) lower inflation
b) lower economic growth
c) increasing exchange rates
d) outflows of financial capital abroad
Chapter 18 important questions
When the interest rate in an economy increases, it is likely the result of either:
a) a decrease in the government’s budget surplus or an increase in its budget deficit.
b) an increase in the government budget surplus or its budget deficit.
c) a decrease in the government budget surplus or its budget deficit.
d) an increase in the government budget surplus or a decrease in its budget deficit.
Suppose you are analyzing data for an economy in which Ricardian neutrality holds true. If the budget deficit increases by 50, then:
a) private savings will decrease by 50
b) private savings will increase by 50
c) investment will decrease by 50
d) investment will increase by 50
If a government’s budget deficits are increasing aggregate demand when the economy is already producing near potential GDP, causing a threat of an inflationary increase in price levels, then the central bank may react with:
a) a loose monetary policy.
b) a discretionary monetary policy.
c) an expansionary monetary policy.
d) a contractionary monetary policy.
If the U.S. economy is producing at a level that is substantially less than potential GDP and the government’s budget deficits are increasing aggregate demand, then ____________________________ is not much of a danger.
a) an inflationary increase in the price level
b) international financial investment
c) the central bank’s contractionary monetary policy
d) a tight monetary policy
Why Choose Us
We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.
Professional Academic Writers
Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.
Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.
We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.
At Papers Owl, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.
Customer Support 24/7
Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: firstname.lastname@example.org.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Papers Owl has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.
At Papers Owl, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.
Admission and Business Papers
Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.
Editing and Proofreading
Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.
We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.