econ 16.1 hw & quiz (myeconlab)

From the discussion in this chapter, which source of government revenue is likely to increase the most in the future? a. individual income taxes b. excise taxes c. corporate income taxed d. sales taxes

A

In 2009, congress and the president enacted "cash for clunkers" legislation that paid people buying new cars up to $4,500 if they traded in an older, low gas-mileage car. Was this piece of legislation an example of fiscal policy? a. yes, because the primary goal of the spending program was to stimulate the nation economy. b. No, because the effect of the spending program was to increase the gas mileage of cars currently on the road. c. Yes, because any government spending program is, by definiton, fiscal policy d. No, because the program did not have any effect on the national economy

A

what is the difference between federal government purchases and federal government expenditures? a. government purchases are included in government expenditures b. government expenditures are included in government purchases c. government purchases refer to spending for which no good or service is received d. they are the same

A

what is the difference between federal purchases and federal expenditures? a. federal purchases that the government receives a good or service in return, whereas federal expenditures include transfer payments b. Federal purchases and federal expenditures both require that the government receives a good or service in return. c. the difference between federal purchases and federal expenditures is so small that is is generally ignored d. federal purchases require that the government receives a good or service in return, whereas federal expenditures exclude transfer payments

A

who are the baby boomers? a. people born between world war 2 and 1965 b. people born prior to WW1 c. people born between 1965 and 1975 d. people born between WW1 and WW2

A

Are federal purchases higher today than they were in 1960? a. as a percentage of GDP, federal purchases have decreased since 1960 b. as a percentage of GDP, federal purchases have increased since 1960 c. as a percentage of GDP, federal purchases have remained unchanged since 1960.

A`

Are federal expenditures higher today than they were in 1960? a. as a percentage of GDP, federal expenditures have remained unchanged since 1960. b. as a percentage of GDP, federal expenditures have increased since 1960 c. as a percentage of GDP, federal expenditures have decreased since 1960

B

fiscal policy refers to: a. the Feds use of taxes and expenditures to achieve macroeconomic policy objectives b. the governments use of taxes and expenditures to achieve macroenomic policy objectives c. the governments use of interest rates macroenomic policy objectives d. the Feds use of interest rates to achieve macroeconomic poliyt objectives

B

which of the following statements is most accurate regarding fiscal policy and monetary policy? a. fiscal policy includes changes in government spending and taxes and is controlled by the federal reserve. Monetary policy includes changes in the money supply and interest rates and is controlled by the federal government. b. fiscal policy includes changes in government spending and taxes and is controlled by the federal government. Monetary policy includes changes in the money supply and interest rates and is controlled by the Federal Reserve. Both policies are intended to achieve microeconomic objective

B

After September 11, 2001, the federal government military spending on wars in Iraq and Afghanistan. Is this increase in spending considered fiscal policy? a. Yes. Fiscal policy refers to changes in government spending and taxes. b. Yes. Increases in defense spending are designed to achieve macroeconomic policy objectives c. No. The increase in defense spending after that date was designed to achieve homeland security objectives d. No. Fiscal policy refers to changes in interest rates and the money supply

C

What is Fiscal Policy? a. Fiscal policy can be described as changes in interest rates and taxes to achieve macroeconomic policy objectives b. Fiscal Policy can be described as changes in interest rates to achieve macroeconomic policy objectives c. Fiscal policy can be described as changes in government spending and taxes to achieve macroeconomic policy objectives d. Fiscal policy can be described as changes in government spending and interest rates to achieve macroeconomic policy objectives

C

some spending and taxes increase or decrease with the business cycle. This event often has an effect on the economy that is similar to fiscal policy is called: a. transfer payments b. monetary policy c. automatic stabilizers d. discretionary fiscal policy

C

why should the retirement of the baby boomers cause a large increase in the growth rate of spending by the federal government on Social Security? a. with the retirement of the baby boomers, there will be fewer individuals collections S.S than currently b. with the retirement of the baby boomers, there will be more workers retiree than currently c. with the retirement of the baby boomers, there will be more individuals collecting S.S than currently.

C

When the economy is experiencing a recession automatic stabilizers will cause: a. transfer payments to increase and tax revenues to increase b. transfer payment and tax revenues to be unaffected c. transfer payments to decrease and tax revenues to decrease d. transfer payments to increase and tax revenues to decrease

D

who is responsible for fiscal policy? a. The Federal Reserve controls fiscal policy b. The Federal government and the Federal Reserve jointly control fiscal policy c. Fiscal policy is controlled by market forces d. The federal government controls fiscal policy

D