ECON Comb.
a. TARP
Discretionary fiscal policy
c. The tax cuts in the 2009 stimulus package
Discretionary fiscal policy
In Figure 6.1, which area represents an expansion?
E
In 2015, federal taxes on tobacco raised approximately
$15billion. $1 billion. $ 42 Billion
If the total cost of producing 19 wizzbies is $38,000 and the total cost of producing 20 wizzbies is $39,000, the average total cost of producing the 19th wizzbie is approximately
$2,000. $38,000. $19,000. $1,000. (incorrect)
In 2013, the average child who was eligible for Medicaid cost the government
$2,807.
Combined in 2014, the federal and state spending on Medicaid amounted to
$496 billion.
If the deductible is $500 and the co-payment is 20%, on a covered expense of $1000 the individual will pay _____, and their insurance company will pay ______.
$600; $400
In 2014, the U.S. spent ________ to educate _________ elementary and secondary school students.
$700 billion; 63 million
In 2014, the percentage of people who were not covered by health insurance for the entire year was
10%.
If the price of a bottle of orange juice in the downtown area is $0.50 per bottle and, at that price, each of the 10,000 people working in the downtown area wants to buy two bottles of orange juice per day, the quantity demanded in the downtown orange juice market would be
20,000 bottles per day.
Between 2009 and 2011, Federal Spending as a percentage of GDP ranged between
22% and 25%.
In 2014, children under 18 were ___ percent of the general population but ____ percent of those who are poor.
23.3; 33.3
In 2014, Medicaid and the Children's Health Insurance Program, combined, covered
44 million children and 27 million adults.
If a college textbook costs $80 (for a new book) at a college bookstore, it probably cost the bookstore
60. $80. $100.
In 2014, the percentage of people covered by health insurance for the entire year was
83%.
Using Table 6.1, from the 1982-1984 base to 2003, prices increased
84.3%.
Which of the following is likely to occur after several years of relevant rent control?
A decrease in available housing
Part of the Patient Protection and Affordable Care Act involved a tax on indoor tanning that tanning salons are required to collect from tanners and send to the federal government. Which of the following would be the predicted result?
A movement to the left in the demand for tanning
An environmental economist would likely recommend which of the following policies?
A tax on gasoline equal to the environmental damage caused by a gallon of gasoline
Referring to Figure 1.9, if a point is unattainable, it is in
AREA #2 but not on the curve.
Which of the following policies might create demand-pull inflation?
All of these policies could create demand-pull inflation
Which of the following would qualify as an aggregate supply shock?
An unexpected increase in oil prices
Economic incentives can come from
Answer: (all of the options are correct.) government programs. markets. taxes.
In 2015, which country had the largest trade surplus with the United States?
China
The Constitution of the United States grants the power to "coin money and regulate the value thereof" (which is interpreted to mean the power to engage in monetary policy) to
Congress
Referring to the Production Possibilities Frontiers in Figure 1.11 A and B, which depicts generalized growth when there is increasing opportunity cost?
Either A or B is correct (Incorrect) Neither A nor B are correct Fig. A Fig. B
It is impossible to export or import services.
False
Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in income if a good is considered inferior?
Figure 1
Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of an increase in the price of a complement for a good?
Figure 2
Of the following explanations for why crime fell from 1990 to 2014, which does the Brennan Center suggest had an impact in the 1990s, but not after?
Longer effective sentences
Which of the following reasons offered for why crime fell in the 1990s does the Brennan Center suggest had no impact?
Longer effective sentences The increase in the number of police The increased use of community policing Higher rates of incarceration (Incorrect)
In Figure 5.7, assuming perfect competition, which price is associated with positive economic profit?
MR4
Which Federal Government program(s) pay(s) for the health needs of people who are old and poor?
Medicare and Medicaid
b. The AIG bailout
Monetary policyl policy
d. The rapid increase in unemployment compensation spending
Nondiscretionary fiscal policy
e. The rapid reductions in state sales and income tax revenues resulting from people having lower incomes
Nondiscretionary fiscal policy
Which of the following is true?
On a linear demand curve, the higher the price, the more elastic is demand.
Which lag described in Chapter 9 did the concept of "shovel-ready" intend to combat?
Operational lag
In Figure 26.1, the price under monopoly is
P1.
In Figure 26.1, the price under perfect competition is
P2.
There will be long-run pressure on the price to fall whenever
P>ATC.
In the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, Box 5 should be filled with
RGDP* for macroeconomic equilibrium Real Gross Domestic Product.
Which of the following programs is off-budget?
Social Security
In 2016, the largest item in the Federal Budget was (#2)
Social Security.
Which of the following was not likely a contributing factor to the recession of 2007-2009?
The 2008 tax rebates
b. The real-balances effect is illustrated by which of the following examples?
Your favorite pizza place offers a two-for-one pizza sale.
The Obama administration's stimulus package was
a balance between tax cuts, spending on projects, and shoring up the unemployment and welfare systems.
"Cap-and-trade" would be more aligned with those who wish to use private market innovations to solve environmental problems than a regulatory-based environmental system because
a cap-and-trade approach allows firms to trade permits so that firms with the lowest pollution cleanup costs will clean up.
Economic Profit exists whenever
a firm makes more than the minimum required to maintain the incentive to remain in the industry.
a. The real-balances effect indicates that
a higher price level will decrease the real value of many financial assets and therefore reduce spending.
Expansionary monetary policy would shift the
aggregate demand curve to the right.
Suppose there is an increase in the confidence that workers have in their future employment and income. This will cause
an increase in saving, which will decrease interest rates. an increase in borrowing, which will increase interest rates. an increase in borrowing, which will decrease interest rates. Incorrect an increase in saving, which will increase interest rates.
In the long run, rent control has ________ impact because, over time, supply and demand become ________ elastic.
an increasing; more
The estimated costs per crime in the U.S. are
around $1,000 when excluding "pain and suffering" cluster and around $15,000 when including "pain and suffering".
Recently, the amount of time men devote to housework has been increasing while the amount of time women devote to housework has been decreasing. An economic explanation for this trend could be
as women have more employment opportunities, their opportunity cost of doing housework relative to men has risen.
In the years prior to the recession the economy was growing
at about its typical rate.
For a market to be characterized by monopoly, there must be: A)a large number of firms with no one able to influence price. B)indistinguishable products being sold. C)barriers to entry and exit. D)good information about sales and costs.
barriers to entry and exit.
The Total Cost Function in the book
begins by sharply rising, flattens out, then sharply rises again.
If the equilibrium rent is ________ the controlled level, then rent control laws are ________.
below; irrelevant
College textbook royalties are paid based on the sales to
bookstores.
In a market for money,
borrowers are the consumers and lenders are the suppliers.
In early 2005, inflation increased unexpectedly due to an increase oil prices. This helped
borrowers.
When discussing an addictive drug, an economist is likely to focus on
both the external costs and the "information problem" associated with addiction.
The magnitude of intangible losses can sometimes be estimated by investigating the average
compensation awarded by juries in civil cases of wrongful death and personal injury.
The development of a new energy source that could be used to produce or transport any good would be a source of
concentrated growth. generalized growth. import competing growth.
The group of people who are willing to offer money in exchange for goods and services is called
consumers
The enormous budget deficits of 2009 through 2011 meant that the federal government was borrowing upwards of $1.5 trillion per year. If that borrowing had limited the ability of the private sector to get financial capital for its purposes, economists would call this
crowding out.
If the poverty rate declines because of a general increase in the economic standing of lower income people, the rational criminal model would predict
decreased crime.
In the market for birth control devices, if the number of women of child-bearing age increases, the
demand curve will shift to the right.
An increase in the income of consumers will cause the
demand for some goods to rise and for others to fall.
The magnitude of intangible losses can sometimes be estimated by investigating the average
dollar amounts individuals willingly pay to reduce their chance of being a victim.
When there are significant barriers to entry and there are few firms in the industry,
economic profit will continue for the firms in the industry.
At point A of Figure 3 within Figure 3.1, demand is
elastic
If the price of a good decreases by 5% and the quantity demanded remains unchanged, then at that price, the good is
elastic. perfectly elastic. perfectly inelastic.
A decrease in demand will decrease prices least when supply is
elastic. unit elastic. perfectly inelastic.
Suppose you were to hear an economist defend the minimum wage on the grounds that when she estimated the saving rate of minimum wage workers and found it to be much smaller than the savings rate of employers. You would know her to be relying on the ____ argument.
elasticity work effort consumer and producer surplus Incorrect macroeconomic
The introduction of e-cigarettes provides a substitute for regular cigarettes. The result is likely that the
elasticity of demand increases.
Another term for surplus is
excess supply.
A price excludable public good is such that
exclusivity holds, but rivalry does not.
A decrease in the discount rate would be an example of
expansionary monetary policy.
A mechanism by which buyers and sellers of the currencies of the various countries negotiate an exchange is a
foreign exchange market.
Of course, all individual students are better off if they get better grades. If you were to conclude that all students would be better off if everyone received an A you would
have fallen victim to the fallacy of composition.
Economist Timothy Smeeding reported that appropriately-adjusted poverty rates were
higher in the U.S. than in eight of the nine European countries studied.
If the cost of living is higher in richer cities than in poorer cities, and the nominal minimum wage is the same in every city, then the real purchasing power of the minimum wage would necessarily be
higher in the poorer cities.
Nations with single payer systems typically have
higher life expectancies than in the U.S.
SAT scores are ________ than they were in the 1960's, ___________ they were in 1980.
higher; and much higher than lower; and much lower than lower; but higher than
b. The negative externalities that might occur from legalizing marijuana are
impaired driving and family problems.
The opportunity cost for you to attend college might best be described as
income you could have earned at a full-time job.
An increase in the confidence that equipment-buying firms have in their future profitability will
increase the demand for borrowable money.
If the poverty rate increases because of a general decline in the economic standing of lower income people, the rational criminal model would predict
increased crime.
Imports into the United States (as a percentage of GDP) have
increased over the last 50 years.
From 1995 to 2013, the share of revenue to public institutions of higher education attributable to tuition
increased to 41% from 29%.
Suppose the United States chose to legalize the production, and use of marijuana and after doing so, found that the price rose. This would
indicate that the demand-side effect was greater than the supply-side effect.
Policy initiatives typically associated with "supply-side economics" would include
investment tax credits.
The underlying reason that there are unattainable points on a production possibilities frontier diagram is that there
is a scarcity of resources within a fixed level of technology.
A resource
is anything that we consume directly or use to make things we will ultimately consume.
SSI differs from other programs in that
it is part of the Social Security system.
One unsettling consequence of setting a tax on tobacco sufficiently high to reduce consumption would be that
it would make Social Security's financial outlook worse.
In 2015, personal income taxes made up _____ of federal government revenues.
just less than half
As women entered the workforce in the 1950s through the 1990s, the
labor for participation rate steadily rose.
The principal argument against rent control is that
landlords and a few tenants are made worse off by more than the majority of tenants that are made better off.
The argument that supply of apartments is inelastic in the short run is based on the idea that
landlords will fix up many new apartments when there are small changes in rent. Incorrect it takes time to build new apartments. people will change apartments quickly when there are small changes in rent. it is costly to move to a different location.
Public teacher layoffs, in most states, would be
last in, first out.
Imagine an economist ordering pizza by the slice. When deciding how many slices to order she would pick that number where the enjoyment of the _____ equals the enjoyment she could get from using the money on another good.
last slice
The reason cigarette taxes would impact kids more than adults is that adult demand is _____ elastic than demand by kids.
less
If the poverty line for a family of 2 is $10,000, then the poverty line for a family of 4 is likely to be
less than $20,000 but greater than $10,000.
The economic value of your college's basketball team is
less than it may seem because people substitute a game for another local activity.
The strategy of faculty choosing to stay with an old edition of a book is
likely to reduce the costs to students.
If the poverty line is set too low, the official poverty rate will be
lower than the true level.
A tax on beer will
lower the equilibrium price and lower the equilibrium quantity. lower the equilibrium price and raise the equilibrium quantity. raise the equilibrium price and lower the equilibrium quantity.
When an insurance company pays 20% of the bill for health care services, this
makes demand less elastic.
The impending retirement of aging Baby Boomers is quite likely to re-establish the trend of
mandatory spending, becoming an ever-larger share of total federal spending.
b. If a consumer purchases more of a good as the price falls, we can assume that the consumer's
marginal utility has also fallen.
Medicare costs are high, and rising at rapid rates, because
medical technology is advancing and raising costs, and at the same time there are more and more elderly.
The motorsports industry is dominated by independent teams running in series operated as
monopolies
There are thousands of electric companies in the country, while in a particular city there is only one. The best model to analyze this market is
monopoly
If the United States were to eliminate the drinking age, then in terms of externalities you might predict the outcome to be
more drunk driving accidents and driving-related incarcerations.
The annualized monthly CPI numbers are
more volatile than the Core CPI.
An increase in household income for a good that is considered inferior would
move its demand curve to the left.
Economists estimate that the rate of return to prescription drug companies is
much below average. much above the average. (NOT B) slightly below average. at or slightly above the average.
Compared to a recreational user of a drug, an addicted user's elasticity of demand is
much less elastic.
In 2016, the largest item in the Federal Budget was
national defense amp; homeland security.
If the (steadily decreasing) marginal benefit of another day spent in the hospital is equal to the (steadily increasing) marginal cost of an additional day spent in the hospital, the
net benefit from the hospital stay is maximized.
The advertised interest rate is the
nominal interest rate.
According to the Bureau of Labor Statistics, the Consumer Price Index was
only intended to measure increases in the cost of living for a small segment of society. never intended to measure increases in the cost of living, but many use it that way. never intended to measure increases in the cost of living and no one uses it that way. Incorrect always intended to measure increases in the cost of living and does precisely that.
If the government could force firms to add any external cost to their private cost, the result would be that
output will decrease and price will increase.
Monopoly power exists in drug inventions because of
patents for drugs.
There are a quarter of a million dairy farmers in the country. The best model to analyze this market is
perfect competition.
If the price of a good increases by 5% and the quantity demanded remains unchanged, then at that price, the good is
perfectly elastic. elastic. perfectly inelastic.
If you were to conclude, after carefully examining data and using proper evaluation techniques, that a tax credit for attending college benefits the poor more than a tax deduction (of equal total cost to the government) would, you would have engaged in _________ analysis to reach that conclusion.
positive
The educational production function shows the _____ relationship between _____ and _____.
positive; test scores; teacher quality
When analyzing a problem, if an economist is attempting to understand why something happened without considering whether or not the action was fair or just, the economist is thinking
positively.
An economist looks at rent controlled prices as an example of a
price ceiling.
Rent control is an example of a _________.
price ceiling.
If price is greater than average variable cost, a profit maximizing firm will always
produce where Marginal Cost equals Marginal Revenue.
An example of the type of crime that is contemplated by the rational criminal model is
prostitution.
The percentage of the federal budget devoted to Social Security has
remained steady over the last decade.
Between 1986 and 2015, while the general price level increased by 116%, drug prices
rose by 268%.
An increase in the excise tax imposed upon consumers of gasoline
shifts the demand for gasoline to the left.
The present value analysis of the death penalty
shows that the death penalty is not cost effective in its punishment and economists almost universally reject it for that reason.
The shutdown condition for a firm is to
shutdown if price is less than Average Variable Cost.
Eric Hanushek, from his research, concluded that
spending more on education is a waste of taxpayers' resources.
The costs borne by an individual victim of theft can diverge from the social costs if the
stolen items were priceless. stolen items were destroyed by the thief. stolen items were covered by insurance.
If the price of inputs increases, the
supply curve will shift to the left.
History suggests that rent control laws
tend to become a permanent fixture of a community.
The period from 1984-2007 has been labeled
the Great Moderation.
a. According to the law of diminishing marginal utility, as more of a product is consumed,
the amount of extra happiness decreases.
Decriminalizing a drug is likely to lead to a price decrease if
the anticipated supply effect is greater than the anticipated demand effect.
For a married couple, if one partner must enter a nursing home,
the assets of the household are split, and Medicaid will pay once the ill partner's assets are gone.
When examining the question of tobacco taxes, economists focus almost entirely on
the costs to nonsmokers (like secondhand smoke).
The copyright gives its owner
the exclusive right to sell a work of intellectual property.
The statement that Congress passed a tax bill and two months later a recession began, so the bill must have been poor policy is an example of
the fallacy that correlation is the same as causation.
Existence of a "deadweight loss" in the prescription drug market indicates that
the increased profits to firms is less than the decreased net value to consumers.
In the market for money, the price is
the interest rate.
Elasticity of demand and elasticity of supply for apartments is greatest in
the long run. the intermediate period. the short run. Incorrect rural areas.
The optimal level of crime control is achieved where
the marginal reduction in the expected cost of crime equals the marginal cost of prevention.
The heart of the argument against an increase in the minimum wage is that
the net gain to workers is less than the loss to firms.
The amount of money consumers pay producers is
the price times the quantity or the rectangle whose height is the price and base is the quantity purchased.
The underlying reason for the upward-sloping nature of the supply curve is that
the production of most goods comes with increasing marginal costs.
The "macroeconomics" rebuttal to the traditional analysis of the minimum wage argues that
the rich consume less than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand.
a. The current negative externalities that might be lessened by legalizing marijuana are
the social costs of law enforcement and incarceration.
If policy makers were to attempt to set a tax equal to the external costs of alcohol, one would have to evaluate
the value of innocent lives lost to drunk driving.
Rent control laws, like minimum-wage laws apply to everyone, not simply the poor. Some argue that there should be provisions to limit rent control eligibility based on income or wealth or age.
the wealthy can afford to pay market prices and do not need a subsidy, and rent control is an indirect subsidy.
Rent control continues to survive despite its flaws because
those displaced by the policy do not live in the community and cannot vote to end it.
Those that gain from the imposition of rent control are
those tenants who maintain their apartments.
Referring to Figure 1.5, the opportunity cost of producing the second unit of pizza is
three units of soda.
In order to be drawn correctly, the minimum of the ATC is
to the right and up from the minimum of the MC.
An example of an external cost of alcohol is
traffic fatalities attributable to drunk driving.
If the percentage change in quantity supplied is 10%, and the percentage change in price is 10%, then the supply for the good is
unit elastic.
If the price rises and the total amount consumers spend on the good remains unchanged, then demand must be
unit elastic.
Reimbursement rates for Medicaid are
vastly different across the states.
If the Federal Reserve has indirect influence of the loanable funds (short term) interest rate, the supply of those loanable funds is likely
vertical. downward sloping. Incorrect flat. upward sloping.
Consumer surplus is defined as
when quantity demanded is greater than quantity supplied. when quantity supplied is greater than quantity demanded.(Incorrect) the value that the consumer places on a good over the amount they pay for it. the money that the producer gets from a good over the amount they are willing to sell it for.
The "tragedy of the commons" occurs primarily
where property rights are lacking.
The economic intuition behind the connection between abortion and crime rates is based on the idea that
women who choose abortion do not want the child and, if compelled to raise it would be poorer and do a poorer job at parenting, increasing the likelihood the child would grow up to be a criminal.
The relationship between the rate of return earned on a bond and the length of time until the bond matures is called the
yield curve.
The elements of the stimulus package adopted in 2009 that allowed states to continue to make their unemployment compensation payments, despite having exhausted their funds, should be considered
on-discretionary fiscal policy. discretionary fiscal policy. Incorrect monetary policy. neither discretionary nor non-discretionary fiscal policy programs.
Using simple linear production possibilities frontiers in a simple two-good, two-country model, absolute advantage is evident when
one country can make more of a good than the other country can.
Social Security was intended to
provide retirement income for only those who did not save for themselves. provide a safety net of retirement income to which recipients would add their savings and pensions. cover all of the income necessary for retirement. provide retirement income for only those without private pensions. Incorrect
The Federal Reserve's response to the recession of 2007-2008 was
quick but not obviously effective in shortening the recession.
The stimulus package implemented by the Bush Administration in 2008 included
rebates to individual taxpayers of $600 per individual and $1200 per married couple.
The main effect on the economy of the financial sector crisis in late 2008 was
reduced aggregate demand.
The traditional tools of monetary policy
rely heavily upon changes in individual income tax rates. directly impact the economy. Incorrect can only be utilized after obtaining the approval of Congress. seek to influence an "intermediate" target variable.
The wood in a forest would be considered a
renewable natural resource.
a. When considering the wage that owners can pay a player, a reserve clause results in the wage being closer to the player's
reservation wage.
In 2007, relative to 2001, in the U. S., household
revolving and non-revolving debt were both higher.
As a percentage of GDP, the national debt consistently
rose from 1975 to 1995.
The job losses during this recession were
significant and rapid.
The net effect of savings of the asset substitution, induced retirement, and bequest effects combined is that people save ________they would have without Social Security.
slightly less than
Gasoline prices _______ in late 2007 through mid-2008.
spiked
Limiting trade can be accomplished with
tariffs. all of the options are correct. (Correct) non-tariff regulatory barriers. quotas.
The dire predictions about the underfunded nature of Social Security, Medicare, and state and local pensions could be wrong because
taxable incomes may turn out to be lower than they are currently predicted to be. (incorrect) interest rates may turn out to be higher in the future. GDP grown may turn out to be higher than it is currently predicted to be. unemployment rates may turn out to be higher than they are currently predicted to be.
The Endangered Species Act was originally passed in
the 1970's.
The solvency of Social Security can be extended if
the cap on taxable earnings is raised.
The value of a sports franchise to a city's economy depends greatly on
the degree to which noncitizens spend money in the city.
An example of an externality that we see every day is
the emissions from a car's tailpipe.
"Quantitative easing" was different from what the Federal Reserve normally does because with quantitative easing the Fed makes more money available to the economy through
the purchase of 20- and 30-year United States treasuries and mortgage-backed securities.
When analyzing the impact of a budget deficit, an economist will focus on
the ratio of the deficit to GDP and whether what is purchased with the borrowed money can be considered an investment.
Using simple linear production possibilities frontiers in a simple two-good, two-country model, comparative advantage is evident when
the slopes of the two production possibilities frontiers are different.
Economists note that a reason exists for policy makers to subsidize sports stadiums, and it is that
the teams make people happy - even those who don't go to the games.
When tackling local environmental problems, taxes and regulations can be useful. The reason that global problems (like global warming) are more difficult to control is that
there is no ability to enforce those taxes or regulations.
The evidence on most environmental pollutants (lead in the air and water, sulfur in the air, etc.) is that
they have decreased substantially in the last 20 years.
If monetary policy is unchanged, the outstanding national debt will increase whenever
Social Security tax receipts exceed Social Security benefit payments. government tax receipts exceed government spending. Incorrect there is a surplus in the federal budget. there is a deficit in the federal budget.
A recent example of the recognition lag came in the form of it taking
until Fall 2001 to recognize that the recession of 2001 had started in January 2001.
If a chemical does environmental damage but is used in the production of a good that provides satisfaction to the consumer and profit to the producer, an economist
will seek to impose a tax on the good so that the net benefit to society (including the environmental damage) is maximized.
The typical problem for generating parity in sports leagues is that
with no salary cap and with unlimited free agency, big city, high-revenue teams have an advantage.
Which of the following will increase macroeconomic equilibrium prices?
a decrease in taxes
Which of the following will increase macroeconomic equilibrium real gross domestic product?
a decrease in taxes an increase in input prices Incorrect a decrease in government spending a decrease in productivity
If you overheard a worker say that her pension would only give her what she put in and the interest she garnered on those savings, regardless of how long she had worked for the company, you would know she had
a defined contribution program.
When choosing to limit trade, a country can impose a tax on imported goods. This is called
a tariff.
An example of discretionary fiscal policy would be
a tax increase adopted to control inflationary pressures.
Economists Novy-Marx and Rauh contend that cities are
accurately stating the value of their assets but understating the value of their pension liabilities. understating the value of both their assets and liabilities. accurately stating the value of their assets but overstating the value of their pension liabilities. Incorrect accurately stating their pension liabilities.
The notion of the "interest rate effect" was one of the basic reasons behind the downward sloping nature of the
aggregate demand curve.
An increase in government spending will immediately shift
aggregate demand to the right.
The Federal Reserve has indirect control over short-term interest rates, and, as a result, their ability to control economic activity is through
aggregate demand.
The notion of the "classical range" was one of the basic parts of the
aggregate supply curve.
A decrease in government regulation will shift
aggregate supply to the right.
When the National Hockey League had its 2004-2005 work stoppage, it was
an owner lockout over reducing salaries.
The notion of "clean enough" is
appealing to an economist thinking about marginal benefit and marginal cost.
Prior to 1950, for most of the years in which there were deficits, we were also
at war.
Authorization in 2009 of increased federal spending on "shovel-ready" infrastructure projects was intended to speed up the macroeconomic impact of the deficit spending by
avoiding the lengthy design phase of the projects.
If you save more because Social Security motivates you to provide a greater level of inheritance for your children, then this is referred to by economists as the
bequest effect.
If, with one unit of labor, the U.S. can produce 20 units of computer software and 10 units of computer hardware, and China can produce 6 units of software and 6 units of hardware, then trade can make
both better off.
The trends in U.S. international trade are such that
both imports and exports are increasing.
Present value analysis suggests that high-income earners
cannot make an average real rate of return through Social Security even if they live past 100.
An example of the "equity vs. simplicity" tradeoff is the tax treatment of
capital gains.
Nobel laureate economist Ronald Coase suggests that pollution problems could be solved if
community property was owned by self-interested parties.
The amount of US debt owned by the Japanese
continues to rise.
Entitlements have a great deal in common with
defined benefit pension programs.
When trying to move the economy out of recession, the Democratic Party is more likely than the Republican Party to focus on
demand-side and supply-side policies. Incorrect regulatory policies. demand-side policies. supply-side policies.
The Social Security Administration refers to the percentage of people over age 65 as the
dependency ratio.
The 2003 tax rebate is an example of
discretionary fiscal policy.
Some species would be worth the cost of saving them while another species might not be because
for that species, the marginal costs of saving it exceeds the marginal benefits of saving it.
If a person were in the 20% tax bracket and given the choice of a $500 credit or a $2500 deduction,
he would take the credit every time. Incorrect he would take the deduction every time. he would not care. They would constitute the same tax benefit. he would not qualify for either.
A quota that limits U.S. imports of cane sugar
helps U.S. cane sugar producers. helps U.S. corn syrup (sweetener) producers. all of the options are correct. (Correct) harms U.S. sugar consumers.
Suppose an ardent environmentalist sought to preserve limited natural resources for future generations. She would more than likely be arguing that oil and gas companies use an inappropriately
high discount rate when considering optimal resource use.
President Obama's 2009 fiscal stimulus package included
increased spending on "shovel-ready" infrastructure projects.
The efforts to revive the economy in 2009 through 2011 were drawn from
new tools of monetary policy. the traditional tools of monetary policy. Incorrect discretionary fiscal policy. all of the options are correct.
If you overheard a worker say that she has moved up the ladder as far as she can with her current employer and she is going to take the job because they will continue making payments into her 401K, you can be pretty sure she is
on a defined contribution program.
In 2015, the U.S. imports from the rest of the world were approximately
$2,852 trillion. $2,852 million. $2.852 trillion. $2.852 billion. Incorrect
In 2015, the U.S. personal income tax system consisted of the following tax rates:
10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
Use the concept of comparative and absolute advantage to illustrate why a fast-typing business executive might dictate letters on a digital audio recorder for her secretary to type rather than type them herself.
A.In this case, the fast-typing business executive has [an absolute] dvantage in typing. B.Compared to her secretary, the fast-typing business executive must have: a higher opportunity cost of typing and a lower opportunity cost of some other executive task.
Provisions of the 2009 Economic Recovery Act (i.e., President Obama's "Stimulus Package") calling for tax credits for first-time home buyers and hybrid cars confirm that the
Obama Administration believes that taxes can alter the spending decisions of taxpayers.
Most baseball franchises have ________ over the years while the sale price of the typical team has ________.
lost money; risen
If the Federal Reserve wished to engage in expansionary monetary policy, it could
lower the reserve ratio.
The present value of extracting a $50 barrel of oil in five years is
lower, the greater the discount rate.
By most standards of clean air and water published from government sources, the environment is ______ than it was in 1975.
much cleaner (more than 25% by most measures)
In the recession of 2007-2009, the Net Change in Employment was
negative during every month of 2008.
Generational accounting refers to the
net tax rate of each generation, given the taxes they will pay, and the benefits they will receive.
