Econ 201 Final
Suppose a lender expects inflation of 6% over the life of a new loan and hopes to earn a real rate of interest of 3%. What nominal rate of interest will the lender choose?
9
The following is an example of a progressive income tax system: an individual with an income of $10,000 pays $2,000 in taxes, but an individual earning $20,000 pays $3,000 in taxes. (do not refer to the above table). Select one: True False
F
The rich face lower tax bills than the poor under a simple flat tax. Select one: True False
F
The rich face lower tax rates than the poor under a "simple (or pure) flat tax." Select one: True False
F
With deflation, all prices in an economy must be falling. Select one: True False
F
Consider the following data on nominal GDP and real GDP (values are in billions of dollars): Year Nominal GDP Real GDP 1997 $8,318 $8,159 1998 $8,790 $8,516 1999 $9,299 $8,876 T,F: The GDP deflator for 1998 equals 103.2. Select one: True False
T
It is likely that more citizens would own homes under a "progressive tax system" that subtracts home mortgage interest payments from taxable income than a "simple (or pure) flat tax system" that places a fixed tax rate on all income and does not allow deduction of mortgage interest payments from taxable income. Select one: True False
T
Suppose Helen earns $1,000 working over the weekend and that her income is taxed at a 25 percent rate. Her take-home pay will be $750. Select one: True False
T
Suppose a government spent $500K in a given year, but collected $450K in tax revenue. This government operated under a budget deficit of $50K in that year. Select one: True False
T
The following is an example of a progressive income tax system: an individual with an income of $10,000 pays $1,000 in taxes, but an individual earning $20,000 pays $3,000 in taxes. Select one: True False
T
A ______________________ is created each time the federal government spends more than it collects in taxes in a given year. Select one: a. budget deficit b. budget surplus c. corporate tax d. regressive tax
a
Answer the following 3 questions using the previous tables in our economy composed of guitars and guitar picks. Yr........P Guitars.......Qu. Guitar........P Picks.......Qu. Picks 2001...$1...................100....................$2..............50 2002...$2..................150....................$3..............10 2003...$3..................200...................$4..............150 In which year did nominal GDP exhibit the highest growth? Select one: a. 2002 b. 2003
a
Answer the following 3 questions using the previous tables in our economy composed of guitars and guitar picks. Yr........P Guitars.......Qu. Guitar........P Picks.......Qu. Picks 2001...$1...................100....................$2..............50 2002...$2..................150....................$3..............10 2003...$3..................200...................$4..............150 In which year did real GDP exhibit the highest growth rate? Select one: a. 2002 b. 2003
a
A $25,000 price tag on a new car is an example of money as Select one: a. medium of exchange b. unit of account c. a store of value d. a time deposit
b
Answer the following 3 questions using the previous tables in our economy composed of guitars and guitar picks. Yr........P Guitars.......Qu. Guitar........P Picks.......Qu. Picks 2001...$1...................100....................$2..............50 2002...$2..................150....................$3..............10 2003...$3..................200...................$4..............150 What is the rate of real GDP growth in 2003? Select one: a. 75% b. 43% c. 200% d. 100%
b
Fiat money has Select one: a. value independent of its use as money b. little to no intrinsic value and is authorized by the central bank or government c. little to no intrinsic value but is backed by the quantity of gold held by the central bank d. value, because it can be redeemed for gold by the central bank
b
Suppose Gwen earns $2,000 working over the weekend and that income is taxed at a 35 percent rate. What is her take-home pay? Select one: a. $1,000 b. $1,300 c. $1,500 d. $1,650
b
Suppose our economy only produces two items: buttons and shirts. The following table exhibits per unit prices and quantities of these two products over 2011-2013. Use 2011 as the base year. Yr......P of btns......Qu of btns......P of Shirts......Qu of Shirts 2011..$1.................10...................$2....................5 2012..$2.................20..................$2....................6 2013..$2.................25..................$3....................8 What is the GDP deflator in 2012? (not the inflation rate) Select one: a. 100 b. 162.5 c. 180.5 d. 133.3
b
Suppose our economy only produces two items: buttons and shirts. The following table exhibits per unit prices and quantities of these two products over 2011-2013. Use 2011 as the base year. Yr......P of btns......Qu of btns......P of Shirts......Qu of Shirts 2011..$1.................10...................$2....................5 2012..$2.................20..................$2....................6 2013..$2.................25..................$3....................8 What is the inflation rate in 2013? Select one: a. 0% b. 11% c. 62% d. 44%
b
Consider the following data for a fictional economy that produces only two products: oranges and shirts. Year......Oranges.......P of Oranges.......Shirts......P of Shirts 1998.....1800.............$0.90..................100.........$30 2000....2000.............$1.00..................110..........$35 Refer to the table above. Nominal GDP for this fictional economy for 1998 equals Select one: a. $4,620 b. $5,850 c. $5,100 d. $5,300
a
During which period would you expect nominal interest rates on new loans to be rising the quickest? (for example, from 5% to 10%, rather than from 5% to 6%) Select one: a. Periods of high and rising inflation b. Periods of disinflation c. Periods of deflation d. Periods of zero inflation rates
a
Gross domestic product (GDP) measures the Select one: a. market value of final goods and services produced in the economy in a given time period. b. number of final goods and services produced in the economy in a given time period. c. number of final goods and services sold in the economy in a given time period. d. market value of old and new final goods and services sold in the economy in a given time period.
a
If an economy tried to use bananas as money, which function would bananas likely have the most difficult time fulfilling? Select one: a. a store of value b. a unit of account c. a medium of exchange d. a means of payment
a
Marginal Tax Rate Income Bracket 5% $0- $20,000 10% $20,001-$30,000 15% $30,001-$40,000 20% $40,001 and higher Suppose Amy has a tax bill of $4,000 and earns income of $33,000. What is her "average tax rate" using the above tax table? Select one: a. 12 percent b. 9 percent c. 14 percent d. 4 percent e. 16 percent
a
Over the past few decades, nominal interest rates have been higher than real rates of interest. This means that Select one: a. lenders must have expected inflation. b. borrowers must have expected deflation c. lenders must have expected prices to fall. d. borrowers must have expected prices to fall.
a
Suppose the adult population in the U.S. is 200 million people of which 132 million are employed and 9 million are unemployed, with the rest not in the labor force. Calculate the unemployment rate. Select one: a. 6.4% b. 4.5% c. 3.4%
a
Suppose the national debt rose by $500M this year. Which of the following scenarios is consistent with this event? Select one: a. Government spending of $700M and taxation of $200M. b. Government spending of $900M and taxation of $300M. c. Government spending of $700M and taxation of $900M. d. Government spending of $400M and taxation of $900M.
a
Suppose you take out a car loan with a 12% nominal rate of interest. Under which inflation rate will the lender be better off? Select one: a. 0% b. 4% c. 6% d. 10%
a
Use the following modified flat tax code to answer the next four questions. Income from $0 to $20,000 is not taxed; all other income is taxed at 25%. What is the tax bill for someone earning $30,000? Select one: a. $2,500 b. $7,500 c. $0 d. $3,000
a
Use the following tax table to determine answers for the next 4 questions. Marginal Tax Rate.......Income Bracket 5%................................$0- $10,000 10%..............................$10,001-$30,000 20%..............................$30,001-$40,000 30%..............................$40,001 and higher Suppose Kate receives income of $100,000 this year, but also pays $20,000 in rent to her landlord. What is her tax bill? Select one: a. $22,500 b. $16,500 c. $30,000 d. $24,000
a
Which of the following is the largest tax revenue source? Select one: a. personal income taxation b. corporation taxation c. social insurance taxation d. excise taxation
a
Which of the following statements is correct? Select one: a. nominal & real GDP are always equal in the base year b. nominal GDP is always above real GDP in base year c. nominal GDP is always below real GDP in the base year
a
Suppose our market basket contains 2 items: 5 apples and 3 pears. Using 2010 as the base year, use the following table to answer the question below. Yr.................P of Apples...........Price of Pears 2010............$1..........................$1 2011.............$1..........................$2 2012............$2..........................$3 What is the inflation rate in 2011? Select one: a. 100% b. 37.5% c. 72.7% d. 137.5% e. 237.5%
b
Suppose the federal government operates under a budgetary deficit this year equal to $250B. Which of the following spending and tax revenue combinations would be consistent with this state of fiscal finance? Select one: a. Spending = $450 B and tax revenue = $ 600 B. b. Spending = $ 450 B and tax revenue = $ 350B c. Spending = $ 250 B and tax revenue = $ 250B d. Spending = $ 450B and tax revenue = $ 200 B e. Spending = $ 350B and tax revenue = $ 600 B
d
Suppose you borrow $1,000 at an interest rate of 12 percent. If the expected real interest rate is 5 percent, then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation Select one: a. less than 7% b. equal to 7% c. equal to 0% d. greater than 7%
d
Suppose you take out a car loan with a 12% nominal rate of interest. Under which inflation rate will you (i.e., the borrower) be better off? Select one: a. 0% b. 4% c. 7% d. 10%
d
The following table displays the 2014 Income Tax Code (for single filers). Marginal Tax Rate......Income Bracket 10%..............................$0- $9,075 15% ..............................$9,075-$36,900 25% ..............................$36,900-$89,350 28%.............................. $89,350- $186,350 33% ..............................$186,350 to $405,100 35% ..............................$405,100 to $406,750 39.6% ...........................over $406,750 Using the 2014 Income Tax Code (for single filers), which marginal tax rate would apply for someone currently earning $120,000 who earns another dollar of income? Select one: a. 15 percent b. 20 percent c. 25 percent d. 28 percent e. 35 percent
d
The real interest rate equals the nominal interest rate ________ the inflation rate. Select one: a. divided by b. plus c. times d. minus
d
Under which of the following budget deficit scenarios would the national debt rise the most in a given year? Select one: a. Deficit = $ 100 B b. Deficit = $ 350 B c. Deficit = $ 550 B d. Deficit = $ 700 B
d
Use the following tax table to determine answers for the next 4 questions. Marginal Tax Rate.......Income Bracket 5%................................$0- $10,000 10%..............................$10,001-$30,000 20%..............................$30,001-$40,000 30%..............................$40,001 and higher Which of the following taxpayers would receive more tax reduction for an annual mortgage payment of $10,000? A taxpayer in a tax rate bracket of... Select one: a. 10 percent b. 20 percent c. 30 percent d. 40 percent
d
Which of the following does not represent a real pay increase? Select one: a. Pay increases 7% during an inflation of 6% b. Pay increases 5% during an inflation of 3% c. Pay increases 12% during an inflation of 10% d. Pay decreases 5% during an inflation of -2% e. Pay decreases 5% during an inflation of -10%
d
Which of the following is an example of using money as a store of value? Select one: a. paying for a new dress with a credit card b. paying cash for a new automobile c. paying rent with a check on a demand deposit d. keeping $200 on hand for an emergency
d
Which of the following statements is correct during any moment in time? Select one: a. GDP deflator inflation is always higher than CPI inflation b. GDP deflator inflation is always below CPI inflation c. GDP deflator inflation is always equal to CPI inflation d. GDP deflator inflation can be above, equal or below CPI inflation
d
Which of the following statements is correct? Select one: a. CPI index and GDP deflator index are each measured on a monthly basis b. CPI index and GDP deflator index each come out on a quarterly basis c. CPI index comes out quarterly and GDP deflator index comes out monthly d. CPI index comes out monthly and GDP deflator index comes out quarterly e. none of these
d
The amount of "deferred taxation" associated with the national debt of the U.S. government exceeds $55,000 on a per capita basis. Select one: True False
t
The government would need to issue new public debt equal to $50K if, in a given year, its expenditures equaled $900K, but took in tax revenue of $850K. Select one: True False
t
Barter is Select one: a. another type of money b. printing too much money c. the exchange of goods and services directly for other goods and services d. the exchange of goods and services for any type of money
c
During inflationary periods Select one: a. all prices rise at the rate of inflation. b. real wages must necessarily decline. c. some prices may fall d. relative prices do not change.
c
For a commercial bank, the term "reserves" refers to Select one: a. a banker's concern ("reservation") in making loans to an individual without a job. b. the profit that the bank retains at the end of the year. c. the cash in its vaults and its deposits at the Federal Reserve. d. the net interest that it earns on loans.
c
If borrowers and lenders expect a higher rate of inflation, Select one: a. nominal interest rates should decrease b. nominal interest rates should remain constant. c. nominal interest rates should increase. d. real interest rates should increase
c
If required reserves are $150 and deposits are $1000, what is the required reserve ratio? Select one: a. 5% b. 10% c. 15% d. 85% e. none of these
c
Jon, a steelworker who has been out of work since his mill closed last year, becomes discouraged and gives up looking for work. Select one: a. no effect on unemployment rate b. unemployment rate goes up c. unemployment rate goes down
c
Nominal GDP will increase Select one: a. only if the price level rises b. only if the price level falls. c. if either the price level or the quantity of goods and services produced rises (and neither fall). d. only if the quantity of final goods and services produced rises.
c
Real GDP will increase Select one: a. only if the price level falls. b. if either the price level rises or the quantity of final goods and services produced rises. c. only if the quantity of final goods and services produced rises. d. only if the price level rises.
c
Sam, the sole earner in his family of 5, just lost his $80,000 job as a research scientist. Immediately, he takes a part-time job at McDonald's until he can find another job in his field. Select one: a. unemployment rate goes down b. unemployment rate goes up c. no effect on unemployment rate
c
Sue lost her job and begins looking for a new one. Select one: a. no effect on unemployment rate b. unemployment rate goes down c. unemployment rate goes up
c
Suppose Helen earns $2,000 working over the weekend and that income is taxed at a 5 percent rate. What is her take-home pay? Select one: a. $1,000 b. $1,300 c. $1,900 d. $1,650
c
Suppose Robert earns $40,000 and has mortgage interest payments of $5,000. What is his "taxable income"? Select one: a. $45,000 b. $40,000 c. $35,000
c
Suppose our economy only produces two items: buttons and shirts. The following table exhibits per unit prices and quantities of these two products over 2011-2013. Use 2011 as the base year. Yr......P of btns......Qu of btns......P of Shirts......Qu of Shirts 2011..$1.................10...................$2....................5 2012..$2.................20..................$2....................6 2013..$2.................25..................$3....................8 What is real GDP growth in 2013? (note: this "real gdp growth") Select one: a. 20% b. 33% c. 28% d. 60%
c
Suppose our economy only produces two items: buttons and shirts. The following table exhibits per unit prices and quantities of these two products over 2011-2013. Use 2011 as the base year. Yr......P of btns......Qu of btns......P of Shirts......Qu of Shirts 2011..$1.................10...................$2....................5 2012..$2.................20..................$2....................6 2013..$2.................25..................$3....................8 What is real GDP in 2013? Select one: a. $20 b. $32 c. $41 d. $52
c
Suppose our economy only produces two items: buttons and shirts. The following table exhibits per unit prices and quantities of these two products over 2011-2013. Use 2011 as the base year. Yr......P of btns......Qu of btns......P of Shirts......Qu of Shirts 2011..$1.................10...................$2....................5 2012..$2.................20..................$2....................6 2013..$2.................25..................$3....................8 What is the inflation rate in 2012? Select one: a. 0% b. 11% c. 62% d. 44%
c
Suppose our market basket contains 2 items: 5 apples and 3 pears. Using 2010 as the base year, use the following table to answer the question below. Yr.................P of Apples...........Price of Pears 2010............$1..........................$1 2011.............$1..........................$2 2012............$2..........................$3 What is the inflation rate in 2012? Select one: a. 100% b. 37.5% c. 72.7% d. 137.5% e. 237.5%
c
Suppose the CPI inflation rate is 15%. Which of the following statements is correct? Select one: a. all prices in the CPI basket are rising b. all prices in the CPI basket are falling c. some prices may be rising, others falling and others may show no change
c
Suppose the adult population in the U.S. is 200 million people of which 126 million are employed and 15 million are unemployed, with the rest not in the labor force. Calculate the labor force participation rate. Select one: a. 63% b. 7.5% c. 71%
c
The "double coincidence of wants" problem is Select one: a. resolved under a system of barter. b. always present in all economic systems. c. resolved by the use of money. d. created by the use of money.
c
The difference between nominal GDP and real GDP is: Select one: a. nominal GDP measures actual productivity b. nominal GDP adjusts for inflation c. real GDP adjusts for inflation d. real GDP excludes imports and exports
c
Consider the following data for a fictional economy that produces only two products: oranges and shirts. Year......Oranges.......P of Oranges.......Shirts......P of Shirts 1998.....1800.............$0.90..................100.........$30 2000....2000.............$1.00..................110..........$35 Real GDP for this fictional economy for 1998 using 2000 as the base year equals Select one: a. $4,620 b. $5,850 c. $5,100 d. $5,300
d
If nominal GDP increases and the price level increases, then we Select one: a. Know real GDP increased b. Know real GDP decreased c. Know real GDP remained constant d. Are unsure what real GDP did
d
Suppose a bank receives a new deposit of $100,000 and operates under a 15% reserve requirement. Which of the following is the correct amount of reserves that must now be held against this deposit? Select one: a. 10% b. 15% c. $150 d. $15,000 e. $5,000
d
Suppose our economy only produces two items: buttons and shirts. The following table exhibits per unit prices and quantities of these two products over 2011-2013. Use 2011 as the base year. Yr......P of btns......Qu of btns......P of Shirts......Qu of Shirts 2011..$1.................10...................$2....................5 2012..$2.................20..................$2....................6 2013..$2.................25..................$3....................8 What is nominal GDP in 2012? Select one: a. $40 b. $32 c. $20 d. $52
d
Suppose our market basket contains 2 items: 5 apples and 3 pears. Using 2010 as the base year, use the following table to answer the question below. Yr.................P of Apples...........Price of Pears 2010............$1..........................$1 2011.............$1..........................$2 2012............$2..........................$3 What is the CPI index in 2011? Select one: a. 100 b. 37.5 c. 72.7 d. 137.5 e. 237.5
d
How many barter "prices" would there be in a 21-good economy?
210
A government operates under a budget deficit when it spends less than it takes in from tax revenue. Select one: True False
F
An example of a "modified flat tax" is one where all income is taxed at 20%. Select one: True False
F
An example of a "simple (or pure) flat tax" is one where are all income above $20,000 per year is taxed at 20%; all income below $20,000 is taxed at 0%. Select one: True False
F
Suppose Robert earns $40,000 and has rent payments of $5,000. His "taxable income" is $35,000. Select one: True False
F
T or F? A "pure" or "modified" flat tax must be identical to a "fair" tax. Select one: True False
F
Suppose Beth earns an income of $200,000. Under a "modified flat rate tax" system whereby a tax rate of 25% is imposed on all income above $50,000, what tax rate(s) are applied to her total income of $200,000? Select one: a. 0% b. 25% c. 0% and 25%
C
The following table displays the 2014 Income Tax Code (for single filers). Marginal Tax Rate ......Income Bracket 10% ..............................$0- $9,075 15% ..............................$9,075-$36,900 25% ..............................$36,900-$89,350 28% ..............................$89,350- $186,350 33% ..............................$186,350 to $405,100 35% ..............................$405,100 to $406,750 39.6% ...........................over $406,750 Using the above tax table, suppose Gwen earns another $200, on top of her usual income of $25,000. Which tax rate will apply to these additional $200? Select one: a. 10% b. 15% c. 25% d. 28% e. 33%
b
The real interest rate equals Select one: a. the nominal interest rate divided by the inflation rate b. the nominal interest rate minus the inflation rate c. the nominal interest rate minus the depreciation rate d. the nominal interest rate plus the inflation rate
b
Use the following modified flat tax code to answer the next four questions. Income from $0 to $20,000 is not taxed; all other income is taxed at 25%. What is the tax bill for someone earning $100,000 that also pay $20,000 in mortgage interest payments? Select one: a. $10,000 b. $20,000 c. $0 d. $25,000 e. $36,500
b
Use the following modified flat tax code to answer the next four questions. Income from $0 to $20,000 is not taxed; all other income is taxed at 25%. What is the tax bill for someone earning $100,000? Select one: a. $10,000 b. $20,000 c. $25,000 d. $36,500
b
Use the following tax schedule to determine answers for the next four questions. (You should consider revisiting the above section on how to calculate tax bills under a progressive tax system.) Marginal Tax Rate ......Income Bracket 5% ................................$0- $10,000 10% ..............................$10,001-$30,000 20% ..............................$30,001-$40,000 30% ..............................$40,001 and higher Suppose Nate earns $35,000. What is his tax bill? Select one: a. $7,000 b. $3500 c. $700 d. $10,000
b
Use the following tax schedule to determine answers for the next four questions. (You should consider revisiting the above section on how to calculate tax bills under a progressive tax system.) Marginal Tax Rate...... Income Bracket 5% ................................$0- $10,000 10% ..............................$10,001-$30,000 20% ..............................$30,001-$40,000 30% ..............................$40,001 and higher Suppose Mary earns $8,000. What is her tax bill? Select one: a. $800 b. $400 c. $750 d. $0
b
Use the following tax schedule to determine answers for the next four questions. (You should consider revisiting the above section on how to calculate tax bills under a progressive tax system.) Marginal Tax Rate...... Income Bracket 5% ................................$0- $10,000 10% ..............................$10,001-$30,000 20% ..............................$30,001-$40,000 30% ..............................$40,001 and higher Suppose Brynna earns $30,000 per year. What additional tax would she have to pay if she earned an additional $1,000 in the same year? (That is, on income from $30,000 to $31,000). Select one: a. $300 b. $200 c. $500 d. $0
b
Use the following tax table to determine answers for the next 4 questions. Marginal Tax Rate.......Income Bracket 5%................................$0- $10,000 10%..............................$10,001-$30,000 20%..............................$30,001-$40,000 30%..............................$40,001 and higher Suppose Anne receives income of $100,000 this year, but also pays $20,000 in interest on her home mortgage. What is her tax bill? Select one: a. $22,500 b. $16,500 c. $30,000 d. $24,000
b
When bank deposits increase from $1 million to $2 million, banks' required reserves increase from $100,000 to $200,000. The required reserve ratio is ________. Select one: a. 0.25 b. 0.10 c. 1.00 d. 10.0 e. none of these
b
Which function of money refers to the use of money to state the prices of goods and services? Select one: a. medium of exchange b. unit of account c. store of value d. means of payment
b
Which of the following does NOT describe a function of money? Select one: a. a unit of account b. a hedge against inflation c. a medium of exchange d. a store of value
b
The following table displays the 2014 Income Tax Code (for single filers). Marginal Tax Rate ......Income Bracket 10% ..............................$0- $9,075 15% ..............................$9,075-$36,900 25% ..............................$36,900-$89,350 28% ..............................$89,350- $186,350 33% ..............................$186,350 to $405,100 35% ..............................$405,100 to $406,750 39.6% ...........................over $406,750 How many marginal tax rates are there in 2014? Select one: a. 3 b. 5 c. 7 d. 10
c
The following table displays the 2014 Income Tax Code (for single filers). Marginal Tax Rate ......Income Bracket 10% ..............................$0- $9,075 15% ..............................$9,075-$36,900 25% ..............................$36,900-$89,350 28% ..............................$89,350- $186,350 33% ..............................$186,350 to $405,100 35% ..............................$405,100 to $406,750 39.6% ...........................over $406,750 Using the above tax table, suppose Gwen earns another $200, on top of her usual income of $45,000. Which tax rate will apply to these additional $200? Select one: a. 10% b. 15% c. 25% d. 28% e. 33%
c
Use the following modified flat tax code to answer the next four questions. Income from $0 to $20,000 is not taxed; all other income is taxed at 25%. What is the tax bill for someone earning $15,000? Select one: a. $3,750 b. $1,250 c. $0 d. $15,000
c
Use the following tax schedule to determine answers for the next four questions. (You should consider revisiting the above section on how to calculate tax bills under a progressive tax system.) Marginal Tax Rate...... Income Bracket 5% ................................$0- $10,000 10% ..............................$10,001-$30,000 20% ..............................$30,001-$40,000 30% ..............................$40,001 and higher What is the average tax rate for Nan who earns $45,000? Select one: a. 5 percent b. 9 percent c. 13 percent d. 20 percent
c
Use the following tax table to determine answers for the next 4 questions. Marginal Tax Rate.......Income Bracket 5%................................$0- $10,000 10%..............................$10,001-$30,000 20%..............................$30,001-$40,000 30%..............................$40,001 and higher Suppose Charlie has an income of $100,000 and pays $25,000 per year in mortgage interest payments. Beth has an income of $75,000 and pays rent for an apartment since she does not own a home. Which person will be assigned the higher tax bill in the United States? (assume no other differences between them). Select one: a. Charlie b. Beth c. Charlie and Beth have identical tax bills.
c
When you buy a hamburger for lunch, you are using money as a Select one: a. store of value b. standard of deferred payment c. medium of exchange d. unit of accounting
c
Suppose our market basket contains 2 items: 5 apples and 3 pears. Using 2010 as the base year, use the following table to answer the question below. Yr.................P of Apples...........Price of Pears 2010............$1..........................$1 2011.............$1..........................$2 2012............$2..........................$3 What is the CPI index in 2012? Select one: a. 100 b. 37.5 c. 72.7 d. 137.5 e. 237.5
e
The following table displays the 2014 Income Tax Code (for single filers). Marginal Tax Rate ......Income Bracket 10% ..............................$0- $9,075 15% ..............................$9,075-$36,900 25% ..............................$36,900-$89,350 28% ..............................$89,350- $186,350 33% ..............................$186,350 to $405,100 35% ..............................$405,100 to $406,750 39.6% ...........................over $406,750 Use the above table. Suppose Beth has taxable income of $200,000. Which of the following marginal tax rates will her income have been taxed at? Select one: a. 10% b. 15% c. 25% d. 28% e. 33% f. all of these
f
The government is running a policy of "deferred taxation" in a year in which it spends $400M and collects tax revenue of $500M. Select one: True False
f
The national debt as a percentage of GDP roughly tripled from 2010 to 2014. Select one: True False
f