Econ Test 3

Card Set Information

Author:
martijofreyou
ID:
215768
Filename:
Econ Test 3
Updated:
2013-04-25 11:31:18
Tags:
econ
Folders:

Description:
econ test
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user martijofreyou on FreezingBlue Flashcards. What would you like to do?


  1. After 1970, the share of federal spending allocated to national defense:
    declined sharply
  2. Which of the following countries had the highest level of government expenditures as a share of GDP?
    Sweden
  3. Total government spending sums to approximately
    40% of US economy
  4. Measured as a share of the economy, government expenditures:
    rose from less than 10% in 1929 to nearly 35% percent in 2009
  5. The income security program category for federal government outlays includes spending for
    all of these
  6. How does total taxes as a percentage of GDP in the US compare to those of western european countries, such as the UK, Germany, and Sweden?
    US taxation is smaller
  7. When the tax structure of a nation is progressive, as income increase, the tax rate
    increases
  8. "It would be an undue hardship to require people whose income is below 15,000 per year to pay income taxes." this statement reflects which of the following principles for a tax?
    ability-to-pay
  9. "He who pays a tax should receive the benefit from the expenditure financed by the tax." this statement reflects which of the following principles for a tax?
    fairness of contribution
  10. Which of the following answers best reflects the ability-to-pay philosophy of taxation?
    progressive income tax
  11. Which of the following is an example of a progressive tax?
    the federal personal income tax
  12. A tax is regressive if it collects a:
    smaller fraction of income as income rises
  13. Which of the following can be classified as a regressive tax?
    federal gasoline tax
  14. A tax is proportional if, as a persons income rises, the:
    amount of the tax is constant
  15. In exhibit 12-2, we can tell that the tax shown here is:
    proportional
  16. Suppose a person with an income of 20,000 pays a tax of 2,000. It the tax is progressive, then how large of a tax will a person with an income of 40,000 pay?
    more than 4,000
  17. Which of the following US taxes is the most consistent with the ability-to-pay principle?
    the federal income tax
  18. People who often create benefits for the minority and impose the cost on the majority are called:
    special-interest groups
  19. The choice of a voter to remain uninformed because the marginal cost of obtaining information is greater than the marginal benefit from obtaining knowledge is called:
    rational ignorance
  20. Who is recognized as the founder of public choice theory?
    James Buchanan
  21. According to the shortsightedness effect, politicians tend to favor projects with:
    short-run benefits and long-run costs
  22. If congress fails to pass a budget before the fiscal year starts, then federal agencies may continue to operate only if congress has passed a:
    continuing resolution
  23. If the fiscal year begins without a budget and congress fails to pass continuing resolution, then:
    the federal government shuts down
  24. Between 1998 and 2001, the federal budget was
    in surplus
  25. Which of the following is true?
    a budget deficit will ^ with national debt
  26. When the US federal government runs a budget deficit, it borrows money by selling:
    treasury bills, notes and bonds
  27. Indebtedness of the federal government in the form of outstanding interest-earing government security
    national debt
  28. If the federal government has a budget surplus, then the national debt is
    reduced
  29. Which of the following is true about the current US national debt?
    is over 12.0 trillion
  30. Currently, the national debt is approximately
    60% of GDP
  31. When measured as a percentage of GDP, the US national debt reached its highest levels as a result of
    World War II
  32. Which of the following countries has the largest national debt as a percentage of GDP?
    Japan
  33. In recent years, net interest on the national debt paid by the federal government as a percentage of GDP is equal to approximately
    1-3%
  34. External debt is that portion of the national debt
    held by foreigners
  35. Which of the following owns the largest proportion of the national debt?
    federal, state, and local govern and federal reserve
  36. Currently, how much of the US national debt is owned to foreigners?
    30%
  37. In terms of productions possibilities curve, the benefits of trade between two nations are that each nation moves to a higher
    consumption possibility combination
  38. Opening trade between two nations would
    leave production possibility unchanged and ^ consumption possibility
  39. In exhibit 18-1, the production possibilities curve of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of wheat is equal to
    1/4 units of corn
  40. In exhibit 18-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of corn is equal to
    4 units of wheat
  41. In exhibit 18-1, the production possibilities curve of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of corn is equal to
    3 units of wheat
  42. In exhibit 18-1, the production possibilities curve of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of wheat is equal to
    1/3 unit of corn
  43. Comparative advantage indicates that
    a nation can gain from trade even when it is an absolute disadvantage in producing all goods

What would you like to do?

Home > Flashcards > Print Preview