econ module 12 (in order)
As of 2019, there is over ______________ of federal student loan debt in the United States.
$1.5 trillion
America's national debt rose from $5.5 trillion in 2000 to _________ by the end of 2019.
$23 trillion
The Tax Cuts and Jobs Act of 2017 changed the corporate income tax from 35% to __________.
21%
During the Great Recession, the federal government employed fiscal policy to try to stimulate the economy. Which of the following are examples of legislation that Congress passed to try to turn around the economy during the Great Recession? (choose all that apply)
American Recovery and Reinvestment Act of 2009 Economic Stimulus Act of 2008
Hazlitt discusses the fact that the Tennessee Valley Authority increased prosperity in its region. Why does he say this isn't surprising and shouldn't be regarded as a miraculous result of government spending?
Because taxes were taken from other parts of the country and concentrated in this one section.
America's budget deficit reached a trillion dollars during the terms of which presidents? (choose all that apply)
Donald Trump Barack Obama
The government plays an important role in keeping private companies accountable and preventing them from causing excessive pollution. In the United States, the federal organization tasked with protecting human and environmental health is the _________________.
Environmental Protection Agency
Increased taxes reduce the economic incentives for business success. Which of the following are consequences of these reduced incentives? (choose all that apply)
Existing businesses don't give new employment. Real wages are held down. People are deterred from starting new enterprises. Consumers are prevented from getting better and cheaper products. Potential entrepreneurs decide not to become new employers.
One major government service is building transportation infrastructure, such as roads and airports. The government also regulates this travel. Which of the following is a government organization that's responsible for regulating travel in the United States?
Federal Aviation Administration
What happens when providing employment becomes the primary reason (the end instead of the means) for government spending? (choose all that apply)
Government projects have to be invented. Need becomes a subordinate consideration.
What is the largest government healthcare program in the United States?
Medicare
Which of the following are reasons that private lenders are likely to make fewer mistakes than government lenders? (choose all that apply)
Private lenders are selected by a process of survival of the fittest. The money they're lending is their own or has been voluntarily entrusted to them. Private money will only be invested where repayment with interest or profit is expected.
According to Hazlitt, what are the differences between loans provided by government agencies and loans provided by private lenders? (choose all that apply)
Private lenders risk their own money, whereas government agencies risk other people's money. Government agencies will take more risks than private lenders.
Which of the following were programs or legislation created during the New Deal? (choose all that apply)
Public Works Administration Social Security Act Civilian Conservation Corps Agricultural Adjustment Act
FICA tax is a payroll tax that funds which of the following government programs? (choose all that apply)
Social Security Medicare
According to Hazlitt, what is the end result when the government provides loans or subsidies to business?
The government taxes successful businesses in order to support unsuccessful businesses.
According to Hazlitt, which of the following are true, in general, about the individuals selected for government loans? (choose all that apply)
They will be poorer risks than the individuals selected for private loans. There will be a higher percentage of failures, or defaults, on these loans. More money will be lost by loans to these individuals.
Why is contractionary monetary policy rarely used?
Voters don't like tax increases, and politicians who pass such laws risk being voted out of office.
Hazlitt writes, "Government 'encouragement' to business is sometimes as much to be feared as government hostility." This "supposed encouragement" often takes which of the following forms? (choose all that apply)
a guarantee of private loans direct grant of government credit
When government revenues equal government expenditures, the federal budget is considered to be ___________.
balanced
Fiscal policy characterized by decreased government spending and increased taxes is called ____________.
contractionary fiscal policy
When a borrower stops making payments on their loan for several months, the loan is considered to be in __________.
default
When a bridge is built using taxpayer funds, the result is a _________.
diversion of jobs
Emergency services provided by the government include which of the following services? (choose all that apply)
emergency medical services firefighting police protection
Government legal protection includes which of the following services? (choose all that apply)
enforcing weights and measures protecting property rights enforcing contracts
A tax that's levied when an item is produced is called a(n) ___________.
excise tax
Which of the following are consequences of the government getting deep into debt? (choose all that apply)
fewer economic opportunities less fiscal flexibility
A tax that applies the same tax rate regardless of income is called a __________.
flat tax
In the United States, government welfare services include which of the following programs? (choose all that apply)
food stamps public housing unemployment benefits
Which of the following are consequences of contractionary monetary policy rarely being used? (choose all that apply)
high inflation increased government debt
The Great Recession was partially caused by an asset bubble in the ________ market.
housing
When government expenditures exceed government revenues, the federal budget is considered to be ___________.
in deficit
In the United States, state governments are mostly funded by which of the following types of taxes? (choose all that apply)
income taxes sales taxes
Which of the following are negative consequences of an economy that is growing too quickly? (choose all that apply)Which of the following are consequences of contractionary monetary policy rarely being used? (choose all that apply)
increased government debt high inflation
In the United States, the federal government is mostly funded by which of the following types of taxes? (choose all that apply)
individual income taxes excise taxes fees corporate income taxes tariffs payroll taxes
Firefighting is an example of a government service that could be provided by the private sector. However, firefighting services are operated by the government because _____________.
it's more beneficial to society for firefighting services to be provided to everyone
One consequence of high government debt is reduced investment. The government will have to spend much of its budget on interest payments instead of making investments in areas such as infrastructure, education, and research. Which of the following are ultimately consequences of reduced investment? (choose all that apply)
less tax revenue slower economic growth increased debt increased deficits
According to Hazlitt, the belief that government loans for farmers are beneficial comes from which of the following "acts of shortsightedness"? (choose all that apply)
looking at the matter only from the standpoint of the farmers that borrow thinking only of the first half of the transaction
The sum total of all the money the government owes is referred to as the __________.
national debt
Hazlitt writes that the "pleasant dreams" of government being able to spend without taxing and being able to endlessly pile up debt "have always been shattered by" what?
national insolvency or runaway inflation
The government operates many public buildings, such as libraries and courthouses, as well as many public _____, including Yellowstone and Yosemite.
parks
Which of the following is an example of a good or service that would not be profitable for the private sector to provide because non-payers would reap the benefits as much as the payers would?
police protection
A tax in which people with higher incomes pay higher tax rates is called a __________.
progressive tax
In the United States, the bulk of spending by local and state governments goes to which of the following areas? (choose all that apply)
public education road construction and repair public safety public welfare
Large-scale asset purchases in which a central bank buys government bonds or other financial assets from commercial banks and other financial institutions is known as _____________.
quantitative easing
Taxes on imported goods are called ______________.
tariffs
The major excise taxes in the United States are on which of the following products? (choose all that apply)
tobacco alcohol gasoline
Which of the following are negative consequences of an economy that is growing too quickly? (choose all that apply)
unsustainability asset bubbles
An asset bubble occurs when assets like housing, oil, or gold increase significantly, beyond their actual ______.
value
