econ
when the economy is working properly what is the unemployment rate?
4-6%
which of the following would be a progressive tax?
People earnings $35,000 pay 10 percent tax, while people earning $100,000 pay 30 percent tax.
Which one of these people lost his or her job because of structural unemployment?
Rebecca who dropped out of school
what do taxes collected under fica fund?
Social Security and Medicare
if you lived on a fixed income how would you be affected by inflation?
You would be financially stressed because your income does not increase when prices go up.
What is an entitlement?
a social welfare program providing benefits to people who meet certain eligibility requirements
which of the following is most likely to increase unemployment?
an increase in government spending
what do social security taxes pay for?
benefits to older citizens, surviving family members of wage earners, and people with certain disabilities
raising income tax rates on businesses will most likely increase...
consumer spending
karmen loses her job at a shoe factory when the economy falls into a recession. Karmen is...
cyclically unemployed
as prices rise the purchasing power of money?
declines
an example of federal discretionary spending is
defense
According to the demand pull theory, what is responsible for inflation?
demand for goods and services exceeds existing supply
a person who is out of work would like to work but has given up looking for work is called?
discouraged worker
all of the following are types of tax structure except?
discretionary
Which of the following has been most important in reducing poverty over time?
economic growth
most federal mandatory spending is spent on
entitlements
taxes on specific goods such as gasoline and alcoholic beverages are called?
excise taxes
it is unlikely that the unemployment rate will ever fall to zero because of...
frictional unemployment
amber recently moved to boston in order for her husband Jay to begin a new job as an economics professor at Harvard. Amber is an experienced surgeon who is currently interviewing with several different hospitals in boston. Amber is currently:
frictionally unemployed
inflation is a period of...
generally rising prices.
what is the primary way that the government collects money?
income
in the United States which of the following forms of taxation currently represents the largest source of tax revenue for the federal government?
income tax
inflation may result from...
increased levels of taxation
What provides the largest portion of federal revenue?
individual income taxes
which two types of taxes provide the largest amount of revenue to states?
individual income taxes and corporate
how has the distribution of income in the us changed over the last 20 years?
less equal
entitlement programs such as social security fall into what type of federal spending category?
mandatory spending
the government's health plan for the elderly is called?
medicare
what are the differences between medicare and medicaid?
medicare=health care for people over 65 medicaid=low income families
states spend their money on all of these except...
parks and museums
The effects of inflation can be seen mainly in all of the following EXCEPT...
population
the percentage of the population that falls below the poverty line is called the?
poverty rate
a representative collection of goods and services used to calculate the CPI is called?
price index
according to the cost-push theory what is responsible for inflation?
producers raise prices to meet increased costs
the federal income tax is a?
progressive tax
which is the major source of tax revenue for local governments?
property taxes
What theory claims that too much money in the economy causes inflation?
quantity
macroeconomics focuses on:
resource use of the entire nation
an income, property, or sales tax are included in what is called a?
sales tax
When a farm worker loses his job after the harvest, it is an example of......
seasonal unemployment
what is the difference between seasonal unemployment and structural unemployment?
seasonal unemployment occurs because of schedules, whereas structural occurs because people lack skills.
the poverty threshold or poverty line varies according to what?
size of family
which of the following is one reason the federal government collects income taxes as a person earns?
so that the government can pay bills as the come due
Collin, who is 55 years old and has been a steel worker for 30 years, is unemployed because the steel plant in his town closed and moved to Mexico. Collin is experiencing:
structural unemployment
what category does a persons income, property, and sales tax belong?
tax bracket
Which of the following describes a situation where tax laws give preferential treatment to specific types of behavior?
tax loophole
Madison has a part-time job and would prefer to have a full-time job, but has been unable to find full-time work. Madison's labor market status is classified as:
underemployed worker
lowering income tax rates will most likely increase...
unemployment rate
