chapter 14/15

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

According to Keynesian economics, which sector of the economy could offset a decline in business spending?

government

In the Keynesian model, GDP = C + I + G + (X - M), "G" stands for

government

​What do state governments spend the most on?

local governments

​President Reagan tried to reduce government spending by _____.

lowering taxes

the condition in which the quantity supplied is equal to the quantity demanded

macroeconometricequilibrium

the total amount borrowed from investors to finance the government's deficit spending

national debt

Which of the following could be considered a synonym for FICA?

payroll tax

per person basis; total divided by population

per capita

that part of the economy made up of private individuals and businesses

private sector

Which of the following groups does supply-side policy target through stimulation?

producers

​In discussing taxes, which is the opposite of regressive?

progressive

​After intergovernmental revenue, the largest source of revenue for local governments is

property tax

​Supply-side policies aim to _____.

reduce the government's role in the economy

Which of the following is an example of federal mandatory spending?

social security

In Keynes's view, a short-term budget deficit due to government spending or tax cuts is _____.

sometimes necessary to help stimulate the economy

​Which is the primary source of revenue for the federal government?

taxes

Fiscal policy may involve ____. ​

taxing corporations

Higher-than-normal interest rates caused by heavy government borrowing hurts private borrowers through

the crowding-out effect

​States receive most of their intergovernmental revenue funds from

the federal government

​The equilibrium price is determined by ____.

the market

​All but seven states—Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming—rely on the individual income tax for revenue.

true

The terms proportional, progressive, and regressive refer to

types of taxes

​Which is a major revenue category for state governments?

​contributions to employment retirement funds

​How do production costs affect aggregate supply?

Aggregate supply increases when production costs decrease.

policies based on demand-side economics

Keynesian economics

the study of the economy as a whole

Macroeconomics

​Which of the following describes the idea of the Laffer Curve as it is expressed mathematically?

The ratios show the relationship between federal income tax rates and revenue.

​Only five states—Alaska, Delaware, Montana, New Hampshire, and Oregon—have a general sales tax.

false

​Supply-side policies aim to grow the size of the federal government.

false

​Which is an example of a natural monopoly?

a city water system

the total value of all goods and services demanded at different price levels

aggregate demand

​the amount of output that would be produced at all possible price levels

aggregate supply

​An effective tax is one that exhibits one or more of the following characteristics.

all of the above

​The progressive income tax is an example of _____.

an automatic stabilizer

annual budget in which expenditures equal revenues

balanced budget

​"Those who benefit from government goods and services should pay in proportion to the amount of benefits they receive." So states the

benefit principle

a promise to repay a certain amount of money

bond

​Policies that make production more efficient are favored by ______.

both demand-siders and supply-siders

Which type of tax is levied on the sale of an asset held for 12 months or longer?

capital gains tax

program or benefit that uses established eligibility requirements to provide health, nutritional, or income supplements to individuals

entitlement

Which type of tax is levied on specific items or services, including gasoline and telephone services?

excise tax

​A severe economic downturn results in ______.

falling prices

Strategies for achieving economic goals of economic growth, full employment, and price stability have remained the same over time. ​

false

Supply-side policies have proven that smaller government makes the economy more efficient. ​

false


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