Question 1

Under which president did the United States experience the greatest decline in the deficit?

Accepted Answer

A)  Jimmy Carter 
B)  Ronald Reagan 
C)  William "Bill" Clinton 
D)  George W.Bush 
A)  Jimmy Carter 
B)  Ronald Reagan 
C)  William "Bill" Clinton 
D)  George W.Bush

Question 2

According to the approach developed by Gokhale and Smetters in 2003,the discounted value of the long-run fiscal imbalance of Social Security and Medicare programs,as of 2012,was approximately:

Accepted Answer

A)  $6 trillion. 
B)  $40 trillion. 
C)  $63 trillion. 
D)  $106 trillion. 
A)  $6 trillion. 
B)  $40 trillion. 
C)  $63 trillion. 
D)  $106 trillion.

Question 3

Which of the following is TRUE?

Accepted Answer

A)  Both debt and deficit are flow variables. 
B)  Debt is a stock variable,while deficit is a flow variable. 
C)  Debt is a flow variable,while deficit is a stock variable. 
D)  Debt is measured in dollars,while deficits are measured in jobs lost. 
A)  Both debt and deficit are flow variables. 
B)  Debt is a stock variable,while deficit is a flow variable. 
C)  Debt is a flow variable,while deficit is a stock variable. 
D)  Debt is measured in dollars,while deficits are measured in jobs lost.

Question 4

Suppose the federal government has to borrow money because it has budget deficits.What is the mechanism through which this borrowing might crowd out private borrowing and capital accumulation?

Accepted Answer

A)  interest rates 
B)  discretionary spending 
C)  defense spending 
D)  entitlement spending 
A)  interest rates 
B)  discretionary spending 
C)  defense spending 
D)  entitlement spending

Question 5

Which of the following is TRUE?

Accepted Answer

A)  When the economy is in recession,the cyclically adjusted budget deficit is lower than the reported deficit. 
B)  In periods of economic expansion,the cyclically adjusted budget deficit is lower than the reported deficit. 
C)  The reported budget deficit always equals the cyclically adjusted budget deficit with automatic stabilizers during recessions. 
D)  The reported budget deficit always equals the cyclically adjusted budget deficit with automatic stabilizers during expansions. 
A)  When the economy is in recession,the cyclically adjusted budget deficit is lower than the reported deficit. 
B)  In periods of economic expansion,the cyclically adjusted budget deficit is lower than the reported deficit. 
C)  The reported budget deficit always equals the cyclically adjusted budget deficit with automatic stabilizers during recessions. 
D)  The reported budget deficit always equals the cyclically adjusted budget deficit with automatic stabilizers during expansions.

Question 6

Which of the following must be TRUE if the price of college tuition has risen faster than the consumer price index in the past 20 years?

Accepted Answer

A)  The real price of college tuition has risen. 
B)  The nominal price of college tuition has fallen. 
C)  The real price of college tuition has not changed. 
D)  The nominal price of college tuition has not changed. 
A)  The real price of college tuition has risen. 
B)  The nominal price of college tuition has fallen. 
C)  The real price of college tuition has not changed. 
D)  The nominal price of college tuition has not changed.

Question 7

If the interest rate is 10%,what is the present discounted value of receiving $100 now,$140 next year,and $200 two years from now?

Accepted Answer

A)  $440 
B)  $409.09 
C)  $386 
D)  $392.56 
A)  $440 
B)  $409.09 
C)  $386 
D)  $392.56

Question 8

If the interest rate is 10%,what is the present discounted value of receiving $100 next year?

Accepted Answer

A)  $10 
B)  $90 
C)  $90.91 
D)  $110 
A)  $10 
B)  $90 
C)  $90.91 
D)  $110

Under which president did the United States experience the greatest decline in the deficit?

According to the approach developed by Gokhale and Smetters in 2003,the discounted value of the long-run fiscal imbalance of Social Security and Medicare programs,as of 2012,was approximately:

Which of the following is TRUE?

Suppose the federal government has to borrow money because it has budget deficits.What is the mechanism through which this borrowing might crowd out private borrowing and capital accumulation?

Which of the following is TRUE?

Which of the following must be TRUE if the price of college tuition has risen faster than the consumer price index in the past 20 years?

If the interest rate is 10%,what is the present discounted value of receiving $100 now,$140 next year,and $200 two years from now?

If the interest rate is 10%,what is the present discounted value of receiving $100 next year?

Why Study Public Finance

Theoretical Tools of Public Finance

Empirical Tools of Public Finance

Externalities- Problems and Solutions

Externalities in Action- Environmental and Health Externalities

Public Goods

Cost-Benefit Analysis

Political Economy

State and Local Government Expenditures

Education

Social Insurance- the New Function of Government

Social Security

Unemployment Insurance, disability Insurance, and Workers Compensation

Health Insurance I- Health Economics and Private Health Insurance

Health Insurance Ii- Medicare, medicaid, and Health Care Reform

Income Distribution and Welfare Programs

Taxation- How It Works and What It Means

The Equity Implications of Taxation- Tax Incidence

Taxes on Labor Supply

Taxes on Savings

Taxes on Risk Taking and Wealth

Taxation of Business Income

Fundamental Tax Reform and Consumption Tax

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Exam 4: Budget Analysis and Deficit Financing

Under which president did the United States experience the greatest decline in the deficit?

According to the approach developed by Gokhale and Smetters in 2003,the discounted value of the long-run fiscal imbalance of Social Security and Medicare programs,as of 2012,was approximately:

Which of the following is TRUE?

Suppose the federal government has to borrow money because it has budget deficits.What is the mechanism through which this borrowing might crowd out private borrowing and capital accumulation?

Which of the following is TRUE?

Which of the following must be TRUE if the price of college tuition has risen faster than the consumer price index in the past 20 years?

If the interest rate is 10%,what is the present discounted value of receiving $100 now,$140 next year,and $200 two years from now?

If the interest rate is 10%,what is the present discounted value of receiving $100 next year?

Why Study Public Finance

Theoretical Tools of Public Finance

Empirical Tools of Public Finance

Externalities- Problems and Solutions

Externalities in Action- Environmental and Health Externalities

Public Goods

Cost-Benefit Analysis

Political Economy

State and Local Government Expenditures

Education

Social Insurance- the New Function of Government

Social Security

Unemployment Insurance, disability Insurance, and Workers Compensation

Health Insurance I- Health Economics and Private Health Insurance

Health Insurance Ii- Medicare, medicaid, and Health Care Reform

Income Distribution and Welfare Programs

Taxation- How It Works and What It Means

The Equity Implications of Taxation- Tax Incidence

Taxes on Labor Supply

Taxes on Savings

Taxes on Risk Taking and Wealth

Taxation of Business Income

Fundamental Tax Reform and Consumption Tax

Filters