Macroeconomics Quizzes/Exams

The distribution of tax burdens among various groups in society is referred to as a. zero base budgeting b. sectioning c. tax incidence d. regressive placement

c. tax incidence

Opportunity cost a. the dollar price of the purchased item b. the cost of producing the purchased goods c. the next highest valued alternative when a choice is made d. the sum of the dollar values of all alternatives given up when choices are made

c. the next highest valued alternative when a choice is made

Economic growth can be pictured in a production possibilities curve diagram by a. shifting the PPC out b. making the PPC straighter c. moving from a point inside the PPC to a point on the curve d. shifting the PPC in

a. shifting the PPC out

Non price determinants of demand

1. income, 2. prices of related goods and services, 3. tastes and preferences

The US social security tax is an example of a. regressive tax b. premium tax c. proportional tax d. progressive tax

a. regressive tax

Economics assume people are motivated by a. self interest b. social justice c. pride d. unlimited resources

a. self interest

When there is an increase in the duration of unemployment, the US congress typically responds by a. raising income taxes b. extending unemployment benefits c. encouraging unemployed US workers to seek employment overseas d. redefining "unemployed" to the unemployment rate does not look so bad

b. extending unemployment benefits

The government finances social security through a. the sale of goods and services b. payroll taxes c. excise taxes d. state taxes

b. payroll taxes

The largest source of receipts for the federal government is a. capital gains taxes b. personal income taxes c. social security taxes d. corporate income taxes

b. personal income taxes

A positive economic statement is one that a. is free of the ceteris paribus assumption b. is based on a value judgement c. can me refuted d. asserts something about the role of moral behavior

c. can be refuted

The largest spending category for state governments is a. highway construction b. health care c. education d. welfare

c. education

As a result of establishing a legal minimum wage above the market clearing wage a. there will be a shortage of workers b. firms will hire more workers c. firms will hire fewer workers d. fewer workers will want to work

c. firms will hire fewer workers

A production point that lies outside the PPC a. can never be reached b. denotes inefficiency c. is currently not attainable d. indicates unemployment

c. is currently not attainable

In economics, physical capital includes a. bank accounts b. shares of stock c. machinery d. money

c. machinery

One way that the government encourages the production of a good with positive externalities a. an effluent fee b. a market to pollute c. a pollution tax d. a subsidy

d. a subsidy

A benefit of specialization is a. specialists cost less to hire b. training costs are higher c. people enjoy doing one repetitive task over and oveer d. greater output

d. greater output