Econ Chapter 23 Review
Fiscal policy is increased in its effectiveness through: monetary policy. crowding out. administrative lags. the multiplier effect.
D
In your current job, you earn $41,000. You take the standard deduction of $12,200. You have an offer of a new job working for a different employer. Your salary would go up by $6,500. How much extra will you owe in federal income taxes if you take the new job? (With graph) $9,020 $1,430 $780 $650
$780
A debt crisis occurs when: a government cannot repay its loans. interest rates rise. consumers spend too much on credit cards. bond markets weaken.
A
In order to boost output, the federal government engages in _____ fiscal policy, which _____ government spending and _____ taxes. expansionary; raises; lowers expansionary; lowers; raises contractionary; lowers; raises contractionary; raises; lowers
A
Payroll taxes are 6.2%, and Medicare taxes are 2.9%. Your employer owes you $850. How much will your work cost your employer? $927.35 $77.35 $52.70 $24.65
A
The Philippines government provides retirement benefits, unemployment benefits, maternity leave benefits, death and funeral benefits, and other benefits. These are examples of: social insurance. items that count toward GDP. taxes. consumption.
A
The standard deduction for a single person is $12,200. Based on this table, if your total income is $84,200, what is the amount of tax you will pay on your taxable income? (GRAPH) $13,156 $11,699 $18,524 $15,840
B
Fiscal policy works best when it is: not countercyclical. discretionary. timely, targeted, and temporary. general, nonspecific, and long-lasting.
C
On which of the following is there a tax incentive in the United States?(i) health insurance purchased through employers(ii) employer contributions for life insurance(iii) rental value on owner-occupied housing(iv) your mortgage (i), (ii), (iii), and (iv) (iii) and (iv) (i), (iii), and (iv) (iv) only
C
Payroll taxes are 6.2%, and Medicare taxes are 2.9%. If your employer owes you $665, approximately how much will you get after these deductions? $60.52 $19.29 $604.49 $41.23
C
Suppose a high-income person, a middle-income person, and a low-income person all purchase identical houses that are financed by similar mortgages. Who spends the most on tax-preferred goods? the middle-income person They all spend the same on tax-preferred goods. the high-income person the low-income person
C
The Affordable Care Act is an example of: military defense spending. mandatory spending. discretionary spending. health care spending.
C
Why don't most tax expenditures help much if your federal tax bill is zero? You don't qualify for tax breaks if your federal tax bill is zero. Most tax expenditures are specifically for high-income people. Most tax breaks reduce taxable income, but reducing taxable income below zero does not reduce the tax bill. Taxes are an automatic stabilizer.
C
Payroll taxes are 6.2%, and Medicare taxes are 2.9%. Your employer owes you $665. How much will your work cost your employer? $604.48 $41.23 $60.52 $725.52
D
Suppose a high-income person, a middle-income person, and a low-income person purchase identical houses that are financed by similar mortgages. Who gets the largest tax benefit? the low-income person the middle-income person They all pay the same tax rate. the high-income person
D
Which of the following did the New Deal create? tariffs quotas the stock exchange unemployment benefits
D
Which of the following services are provided by local government? Pell grants military defense Medicare bus services
D
With a progressive tax, those with _____ income tend to pay a _____. more; higher share of their income in taxes more; flat tax rate more; lower share of their income in taxes less; higher share of their income in taxes
A
Which of the following is a reason to worry about government debt? Most of the debt is domestic debt. Future generations can help repay the debt. High and rising debt slows economic growth. The government never really needs to repay the debt.
High and rising debt slows economic growth.
Consider the following graph. One of the reasons that government spending rose during the 2007 to 2009 period was the introduction of: the Securities and Exchange Commission. the Affordable Care Act. Medicaid. Social Security.
The affordable care act
A budget deficit occurs when: imports exceed exports. government revenue exceeds government spending. government spending exceeds government revenue. discretionary spending exceeds automatic spending.
government spending exceeds government revenue.
The government's debt is: the accumulation of all the deficits. the current year's deficit. the equivalent of the country's imports. always zero by the end of the year.
the accumulation of all the deficits.
