Econ H.W. Set 10
The US imposed a large tariff on the importation of sugar from South America. This benefits American producers of sugar and hurts American consumers of sugar.
true
The US imposed a large tariff on the importation of tires from china. This benefits American producers of tires and hurts American consumers of tires.
true
The biggest single source of federal tax revenue is the individual income tax.
true
The fact that the social security system now has an annual deficit, this means that the federal government will need to borrow more money to pay all the required social security benefits.
true
The longer you wait until you get social security benefits, the greater will be your annual benefit.
true
The marginal tax rate shows what proportion of an increase in taxable income is paid in taxes.
true
The social security system is a pay as you go system where current payments into the fund are used to pay current benefits to retirees.
true
The social security tax is a flat tax on wages, salaries and self-employment income up to a maximum income ceiling.
true
The tax on cigarettes is an example of a regressive tax.
true
There is no money in the social Security Trust Fund. All that is there is a set of IOUs from the government.
true
Until the last few years, the social security fund took in more money in taxes every year than it paid out in benefits.
true
At the present time, the highest marginal tax rate on federal individual income taxes exceeds 45%.
false
During the 1980s, President Reagan balanced the Federal budget by raising marginal tax rates.
false
From 1950 to 1970, the highest marginal tax rate was less than 20%.
false
If you die before reaching the minimum social security retirement age, all of your tax contributions will be returned to your estate.
false
Imports represent goods and services produced in the United States and sold in the US.
false
In correct order, the largest sources of federal tax revenue are the individual income tax, the corporate income tax, the social security tax, and excise taxes.
false
Net exports equals imports minus exports.
false
Net exports is equal to the sum of exports plus imports.
false
One goal of a tariff on an imported good is to benefit the consumer and the producer.
false
One goal of a tariff on an imported good is to benefit the consumer.
false
President Kennedy initiated the social security system in 1961.
false
President Truman initiated the social security system shortly after the end of World War II.
false
Profits earned by sole proprietorships and partnerships are exempt from federal taxes.
false
Social security taxes are paid on all income from any source.
false
Suppose my income puts me in the 20% marginal tax bracket. Suppose my taxable income increases from $50,000 to $60,000. My taxes will increase by$12,000.
false
Suppose person A earns exactly twice as much as person B every year and their incomes are below the social security maximum cut-off. Suppose they work the same number of years and retire at the same age. Then Person B's annual social security benefit will be twice as great as Person A's.
false
Suppose person A earns more than person B every year and their incomes are below the social security maximum cut-off. Suppose they work the same number of years and retire at the same age. Then Person B will receive a higher annual social security benefit than Person A
false
The Pennsylvania income tax is a progressive tax.
false
The US imposed a large tariff on the importation of sugar from South America. This benefits American consumers by reducing the price of sugar in the US.
false
The US imposed a large tariff on the importation of sugar from South America. This benefits American sugar producers by reducing the price of sugar in the US.
false
The US imposed a large tariff on the importation of tires from China. This benefits American consumers by reducing the price of tires in the US.
false
The US imposed a large tariff on the importation of tires from China. This benefits American tire producers by reducing the price of tires in the US.
false
The federal budget deficit is the total amount of money owed by the federal government since the founding of the United States.
false
The highest marginal tax rate on corporate profits is 55%.
false
The highest marginal tax rate on personal income is 15%.
false
The marginal tax rate shows what proportion of disposable income is paid in taxes.
false
The minimum social security retirement age is 65.
false
The social security system is like a savings account where a worker's contributions are placed in an account for the worker and which will be depleted as he or she withdraws retirement benefits.
false
The wages and salaries paid to government employees are treated as transfer payments.
false
When foreign economies are growing rapidly, there is a tendency for US exports to decrease.
false
When incomes in the US are growing rapidly, there is a tendency for imports to the US to decrease.
false
A quota is a limit on the quantity of some item that can be imported.
true
A tariff is a tax on imports.
true
A tax on a specific commodity is an excise tax.
true
During a prolonged severe recession, government tax revenue tends to decrease.
true
Excise taxes represent taxes on individual commodities such as cigarettes, alcohol, gasoline, tires and airplane tickets.
true
Exports represent goods and services produced in the United States and sold to the rest of the world.
true
For workers whose earnings are between $0 and $5,000, their social security taxes will exceed the federal income taxes.
true
If net exports are negative, we have a trade deficit.
true
If the US has a trade deficit, the US imports more than it exports.
true
One goal of a tariff on an imported good is to benefit the producer.
true
One goal of a tariff on an imported good is to cause the selling price of the imported item to increase.
true
One goal of a tariff on an imported good is to reduce the quantity of sales of the imported item.
true
One reason that the social security system is currently operating at a deficit is because people are living longer.
true
Other things being equal, as life expectancy increases, it becomes more likely that Social Security will continue to have deficits in the future.
true
Other things being equal, if fertility rates decrease, it becomes more likely that Social Security will continue to have deficits in the future because there will be fewer workers paying into the fund.
true
Over the years, the social security system generated a huge surplus, but all of the surplus funds have been spent by the Treasury.
true
Prior to 2010, Social Security always had a surplus. Congress has already spent all the surplus money.
true
Prior to 2010, Social Security tax receipts always exceeded payouts to beneficiaries.
true
Social security taxes are not paid on capital gains income.
true
Social security taxes are not paid on dividend income.
true
Social security taxes are not paid on interest income.
true
Suppose my income puts me in the 20% marginal tax bracket. Suppose my taxable income increases from $50,000 to $60,000. My taxes will increase by $2,000.
true
Suppose person A earns exactly twice as much as person B every year and their incomes are below the social security maximum cut-off. Suppose they work the same number of years and retire at the same age. Then Person A's annual social security benefit will be less than twice as great as Person B's.
true