Question 1

By 2007, the combined cost of all levels of government in the United States had risen from approximately 11% of GDP in 1930 to:

Accepted Answer

A) 50% of GDP. 
B) 33% of GDP. 
C) 25% of GDP. 
D) 15% of GDP. 
E) 10% of GDP. 
A) 50% of GDP. 
B) 33% of GDP. 
C) 25% of GDP. 
D) 15% of GDP. 
E) 10% of GDP.

Question 2

Which of the following are the main areas of international issues for the economy?

Accepted Answer

A) Reducing trade barriers. 
B) Conducting assistance programs. 
C) Coordinating macroeconomic policies. 
D) Protecting the global environment. 
E) All of the above. 
A) Reducing trade barriers. 
B) Conducting assistance programs. 
C) Coordinating macroeconomic policies. 
D) Protecting the global environment. 
E) All of the above.

Question 3

Prior to World War I, aggregate local government expenditures were larger than federal government expenditures.

Accepted Answer

A) True 
 B)False

Question 4

Governments can function to reallocate resources more equitably, but are powerless to effect greater efficiency.

Accepted Answer

A) True 
 B)False

Question 5

Tax incidence is the analysis of:

Accepted Answer

A) how progressive a tax is. 
B) how distorting a tax is. 
C) who ultimately pays the tax. 
D) how a tax is collected. 
E) tax expenditures. 
A) how progressive a tax is. 
B) how distorting a tax is. 
C) who ultimately pays the tax. 
D) how a tax is collected. 
E) tax expenditures.

Question 6

In recent years, the Federal Trade Commission has investigated the airline industry on charges of price fixing.This involves the government in:

Accepted Answer

A) protecting the consumer against external costs of production. 
B) providing a public good for society. 
C) smoothing the effects of the business cycle over time. 
D) protecting the consumer against unfair monopoly practices. 
E) protecting the supplier against consumer misinformation about pricing policies. 
A) protecting the consumer against external costs of production. 
B) providing a public good for society. 
C) smoothing the effects of the business cycle over time. 
D) protecting the consumer against unfair monopoly practices. 
E) protecting the supplier against consumer misinformation about pricing policies.

Question 7

Which of the following are conditions that bind the invisible hand?

Accepted Answer

A) All goods must be produced efficiently by perfectly competitive firms. 
B) All goods must be private goods. 
C) No externalities like pollution. 
D) Consumers and firms must be fully informed about the prices and goods they buy and sell. 
E) All of the above. 
A) All goods must be produced efficiently by perfectly competitive firms. 
B) All goods must be private goods. 
C) No externalities like pollution. 
D) Consumers and firms must be fully informed about the prices and goods they buy and sell. 
E) All of the above.

Question 8

Government expenditure in the United States measured as a percentage of GDP is larger than it is in France.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an example of a direct tax?

Accepted Answer

A) Excise taxes. 
B) General sales taxes. 
C) Inheritance taxes. 
D) Tariffs. 
E) None of the above. 
A) Excise taxes. 
B) General sales taxes. 
C) Inheritance taxes. 
D) Tariffs. 
E) None of the above.

Question 10

Because the United States is organized around a "one person, one vote" rule, the impact of the political structure on economic performance and decision making is:

Accepted Answer

A) an essential and growing field of scholarly research. 
B) difficult to determine, in general, but nonetheless susceptible to productive research. 
C) based in part on the question of whether or not that structure is capable of doing what ought to be done, however that is defined. 
D) producing results that suggest that some objectives and some political structures are incompatible. 
E) all of the above. 
A) an essential and growing field of scholarly research. 
B) difficult to determine, in general, but nonetheless susceptible to productive research. 
C) based in part on the question of whether or not that structure is capable of doing what ought to be done, however that is defined. 
D) producing results that suggest that some objectives and some political structures are incompatible. 
E) all of the above.

Question 11

A general sales tax would probably be regressive if it were applied proportionately to all expenditures.

Accepted Answer

A) True 
 B)False

Question 12

Analysis of the incidence of a tax is really an analysis of its progressivity.

Accepted Answer

A) True 
 B)False

Question 13

It always pays to get more income, even it this shifts you to a higher tax bracket, in the sense that you will definitely have more after-tax income than before.

Accepted Answer

A) True 
 B)False

Question 14

Before World War I, the combined federal, state, and local government expenditures or taxation amounted to little more than one-tenth of the entire US national income.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following can be used by the government to influence the private economy?

Accepted Answer

A) Taxes on goods and services. 
B) Expenditures on certain goods and services. 
C) Regulations that direct people to perform or refrain from certain activities. 
D) All of the above. 
E) None of the above. 
A) Taxes on goods and services. 
B) Expenditures on certain goods and services. 
C) Regulations that direct people to perform or refrain from certain activities. 
D) All of the above. 
E) None of the above.

Question 16

The U.S.federal income tax is designed to be progressive.

Accepted Answer

A) True 
 B)False

Question 17

If government use of resources becomes more efficient, then:

Accepted Answer

A) a rational society will necessarily spend more resources on the public sector. 
B) a rational society will necessarily spend fewer resources on the public sector. 
C) society necessarily moves from inside the production possibility frontier out toward that frontier. 
D) a rational society necessarily chooses more of both public and private goods. 
E) none of the above. 
A) a rational society will necessarily spend more resources on the public sector. 
B) a rational society will necessarily spend fewer resources on the public sector. 
C) society necessarily moves from inside the production possibility frontier out toward that frontier. 
D) a rational society necessarily chooses more of both public and private goods. 
E) none of the above.

Question 18

Increased public services always entail the shift of resources from the private to the public sector.

Accepted Answer

A) True 
 B)False

Question 19

The largest item of expenditure by the federal government is:

Accepted Answer

A) aid to families with dependent children. 
B) foreign aid. 
C) social security. 
D) revenue sharing. 
E) national defense. 
A) aid to families with dependent children. 
B) foreign aid. 
C) social security. 
D) revenue sharing. 
E) national defense.

By 2007, the combined cost of all levels of government in the United States had risen from approximately 11% of GDP in 1930 to:

Which of the following are the main areas of international issues for the economy?

Prior to World War I, aggregate local government expenditures were larger than federal government expenditures.

Governments can function to reallocate resources more equitably, but are powerless to effect greater efficiency.

Tax incidence is the analysis of:

In recent years, the Federal Trade Commission has investigated the airline industry on charges of price fixing.This involves the government in:

Which of the following are conditions that bind the invisible hand?

Government expenditure in the United States measured as a percentage of GDP is larger than it is in France.

Which of the following is an example of a direct tax?

Because the United States is organized around a "one person, one vote" rule, the impact of the political structure on economic performance and decision making is:

A general sales tax would probably be regressive if it were applied proportionately to all expenditures.

Analysis of the incidence of a tax is really an analysis of its progressivity.

It always pays to get more income, even it this shifts you to a higher tax bracket, in the sense that you will definitely have more after-tax income than before.

Before World War I, the combined federal, state, and local government expenditures or taxation amounted to little more than one-tenth of the entire US national income.

Which of the following can be used by the government to influence the private economy?

The U.S.federal income tax is designed to be progressive.

If government use of resources becomes more efficient, then:

Increased public services always entail the shift of resources from the private to the public sector.

The largest item of expenditure by the federal government is:

The Central Concepts of Economics

The Modern Mixed Economy

Basic Elements of Supply and Demand Part

Supply and Demand: Elasticity and Applications

Demand and Consumer Behavior

Production and Business Organization

Analysis of Costs

Analysis of Perfectly Competitive Markets

Imperfect Competition and Monopoly

Competition Among the Few

Economics of Uncertainty

The Labor Market

Land, Natural Resources, and the Environment

Capital, Interest, and Profits Part Four: Applications of Economic Principles

Government Taxation and Expenditure

International Trade

Overview of Macroeconomics

Geometrical Analysis of Consumer Equilibrium

Production Cost Theory and Decisions of the Firm

Filters

Exam 16: Efficiency Vsequality: The Big Trade-Off

By 2007, the combined cost of all levels of government in the United States had risen from approximately 11% of GDP in 1930 to:

Which of the following are the main areas of international issues for the economy?

Prior to World War I, aggregate local government expenditures were larger than federal government expenditures.

Governments can function to reallocate resources more equitably, but are powerless to effect greater efficiency.

Tax incidence is the analysis of:

In recent years, the Federal Trade Commission has investigated the airline industry on charges of price fixing.This involves the government in:

Which of the following are conditions that bind the invisible hand?

Government expenditure in the United States measured as a percentage of GDP is larger than it is in France.

Which of the following is an example of a direct tax?

Because the United States is organized around a "one person, one vote" rule, the impact of the political structure on economic performance and decision making is:

A general sales tax would probably be regressive if it were applied proportionately to all expenditures.

Analysis of the incidence of a tax is really an analysis of its progressivity.

It always pays to get more income, even it this shifts you to a higher tax bracket, in the sense that you will definitely have more after-tax income than before.

Before World War I, the combined federal, state, and local government expenditures or taxation amounted to little more than one-tenth of the entire US national income.

Which of the following can be used by the government to influence the private economy?

The U.S.federal income tax is designed to be progressive.

If government use of resources becomes more efficient, then:

Increased public services always entail the shift of resources from the private to the public sector.

The largest item of expenditure by the federal government is:

The Central Concepts of Economics

The Modern Mixed Economy

Basic Elements of Supply and Demand Part

Supply and Demand: Elasticity and Applications

Demand and Consumer Behavior

Production and Business Organization

Analysis of Costs

Analysis of Perfectly Competitive Markets

Imperfect Competition and Monopoly

Competition Among the Few

Economics of Uncertainty

The Labor Market

Land, Natural Resources, and the Environment

Capital, Interest, and Profits Part Four: Applications of Economic Principles

Government Taxation and Expenditure

International Trade

Overview of Macroeconomics

Geometrical Analysis of Consumer Equilibrium

Production Cost Theory and Decisions of the Firm

Filters