Question 1

Which of the following is not true about government spending on national defense?

Accepted Answer

A) It is the third-largest spending category for the U.S.federal government. 
B) It includes salaries of military personnel. 
C) It fluctuates over time as the political climate changes. 
D) It is not financed with tax revenue. 
A) It is the third-largest spending category for the U.S.federal government. 
B) It includes salaries of military personnel. 
C) It fluctuates over time as the political climate changes. 
D) It is not financed with tax revenue. D

Question 2

Public schools,which educate most students through high school,are paid for primarily by

Accepted Answer

A) state governments. 
B) local governments. 
C) the federal government. 
D) taxpayers directly. 
A) state governments. 
B) local governments. 
C) the federal government. 
D) taxpayers directly. B

Question 3

The largest category of federal government spending is growing because

Accepted Answer

A) the U.S.must spend more on national defense due to the war against terror. 
B) the elderly population is increasing due to rising life expectancies. 
C) expenditures on space exploration have increased dramatically. 
D) expenditures on school voucher programs have increased dramatically. 
A) the U.S.must spend more on national defense due to the war against terror. 
B) the elderly population is increasing due to rising life expectancies. 
C) expenditures on space exploration have increased dramatically. 
D) expenditures on school voucher programs have increased dramatically. B

Question 4

The "other" category of federal spending consists of many less expensive functions of government,including all of the following except

Accepted Answer

A) housing credit programs. 
B) farm support programs. 
C) funding for the National Institutes of Health. 
D) the federal court system. 
A) housing credit programs. 
B) farm support programs. 
C) funding for the National Institutes of Health. 
D) the federal court system.

Question 5

Of the following countries,which country's government collects the largest amount of tax revenue as a percentage of that country's total income?

Accepted Answer

A) Denmark 
B) United States 
C) Canada 
D) Greece 
A) Denmark 
B) United States 
C) Canada 
D) Greece

Question 6

Suppose Ron is willing to pay $200 to see a professional basketball game and Felix is willing to pay $150.Assume the normal price of a ticket is $125.The local government decides to impose a $35/ticket surcharge to raise revenue,causing the ticket price to rise to $160.The resulting deadweight loss is:

Accepted Answer

A) ​$75 
B) ​$25 
C) ​$35 
D) ​$150 
A) ​$75 
B) ​$25 
C) ​$35 
D) ​$150

Question 7

A tax levied on the total amount spent in retail stores is called

Accepted Answer

A) a sales tax. 
B) an excise tax. 
C) a retail tax. 
D) an income tax. 
A) a sales tax. 
B) an excise tax. 
C) a retail tax. 
D) an income tax.

Question 8

When a state levies a sales tax,the tax

Accepted Answer

A) is paid only by the state's residents. 
B) occasionally excludes items that are deemed to be necessities. 
C) is commonly levied on labor services. 
D) applies to wholesale purchases but not retail purchases. 
A) is paid only by the state's residents. 
B) occasionally excludes items that are deemed to be necessities. 
C) is commonly levied on labor services. 
D) applies to wholesale purchases but not retail purchases.

Question 9

Like spending on Social Security,the share of federal government spending on Medicare has risen substantially over time.This is most likely a result of

Accepted Answer

A) a rising population of poor in the economy. 
B) a rising population of the elderly in the economy. 
C) an immigration policy that promotes an influx of migrant farm workers. 
D) All of the above are important factors. 
A) a rising population of poor in the economy. 
B) a rising population of the elderly in the economy. 
C) an immigration policy that promotes an influx of migrant farm workers. 
D) All of the above are important factors.

Question 10

The marginal tax rate for an unmarried taxpayer in the highest taxable income category for 2013 is approximately

Accepted Answer

A) 80 percent. 
B) 50 percent. 
C) 40 percent. 
D) 20 percent. 
A) 80 percent. 
B) 50 percent. 
C) 40 percent. 
D) 20 percent.

Question 11

The U.S.federal government collects taxes in a number of ways.Rank the following sources of revenue from the largest to the smallest.

Accepted Answer

A) corporate income taxes,individual income taxes,social insurance taxes 
B) social insurance taxes,individual income taxes,corporate income taxes 
C) individual income taxes,social insurance taxes,corporate income taxes 
D) individual income taxes,corporate income taxes,social insurance taxes 
A) corporate income taxes,individual income taxes,social insurance taxes 
B) social insurance taxes,individual income taxes,corporate income taxes 
C) individual income taxes,social insurance taxes,corporate income taxes 
D) individual income taxes,corporate income taxes,social insurance taxes

Question 12

In 2011,which category represented the largest category of spending for the U.S.federal government?

Accepted Answer

A) health 
B) income security 
C) national defense 
D) net interest 
A) health 
B) income security 
C) national defense 
D) net interest

Question 13

In 2011,the average American paid approximately how much to the federal government in taxes?

Accepted Answer

A) $2,000 
B) $2,500 
C) $8,000 
D) $10,500 
A) $2,000 
B) $2,500 
C) $8,000 
D) $10,500

Question 14

Which of the following statements is not correct?

Accepted Answer

A) All states have state income taxes,but the percentages vary widely. 
B) Sales taxes and property taxes are important revenue sources for state and local governments. 
C) Medicare spending has increased because the percentage of the population that is elderly and the cost of healthcare have both increased. 
D) A budget deficit occurs when government spending exceeds government receipts. 
A) All states have state income taxes,but the percentages vary widely. 
B) Sales taxes and property taxes are important revenue sources for state and local governments. 
C) Medicare spending has increased because the percentage of the population that is elderly and the cost of healthcare have both increased. 
D) A budget deficit occurs when government spending exceeds government receipts.

Question 15

The government finances the budget deficit by

Accepted Answer

A) borrowing from the public. 
B) borrowing solely from the Federal Reserve Bank. 
C) printing currency in the amount of the budget deficit. 
D) requiring that budget surpluses occur every other year to pay off the deficits. 
A) borrowing from the public. 
B) borrowing solely from the Federal Reserve Bank. 
C) printing currency in the amount of the budget deficit. 
D) requiring that budget surpluses occur every other year to pay off the deficits.

Question 16

From 1950 to today,government spending on Social Security,Medicare,and Medicaid as a percentage of GDP has

Accepted Answer

A) decreased from about ten percent to less than one percent. 
B) increased from less than one percent to about ten percent. 
C) remained constant at less than one percent. 
D) remained constant at about ten percent. 
A) decreased from about ten percent to less than one percent. 
B) increased from less than one percent to about ten percent. 
C) remained constant at less than one percent. 
D) remained constant at about ten percent.

Question 17

In 2011,social insurance taxes represented approximately what percentage of total receipts for the federal government?

Accepted Answer

A) 5% 
B) 12% 
C) 36% 
D) 44% 
A) 5% 
B) 12% 
C) 36% 
D) 44%

Question 18

The two taxes that together provide the U.S.federal government with almost 80 percent of its revenue are

Accepted Answer

A) individual income taxes and property taxes. 
B) individual income taxes and corporate income taxes. 
C) individual income taxes and payroll taxes. 
D) sales taxes and payroll taxes. 
A) individual income taxes and property taxes. 
B) individual income taxes and corporate income taxes. 
C) individual income taxes and payroll taxes. 
D) sales taxes and payroll taxes.

Question 19

A tax on the wages that a firm pays its workers is called

Accepted Answer

A) an income tax. 
B) an excise tax. 
C) a consumption tax. 
D) a payroll tax. 
A) an income tax. 
B) an excise tax. 
C) a consumption tax. 
D) a payroll tax.

Question 20

The share of federal government spending on healthcare has risen substantially over time.This is most likely a result of

Accepted Answer

A) medical advances that provide new,better,but often more expensive medical treatments. 
B) a rising population of the elderly in the economy. 
C) health insurance reform that will include government subsidies for health insurance for many low-to-moderate income families. 
D) All of the above are important factors. 
A) medical advances that provide new,better,but often more expensive medical treatments. 
B) a rising population of the elderly in the economy. 
C) health insurance reform that will include government subsidies for health insurance for many low-to-moderate income families. 
D) All of the above are important factors.

Exam 24: A-Financial-Overview-Of-The-US

Which of the following is not true about government spending on national defense?

Public schools,which educate most students through high school,are paid for primarily by

The largest category of federal government spending is growing because

The "other" category of federal spending consists of many less expensive functions of government,including all of the following except

Of the following countries,which country's government collects the largest amount of tax revenue as a percentage of that country's total income?

A tax levied on the total amount spent in retail stores is called

When a state levies a sales tax,the tax

Like spending on Social Security,the share of federal government spending on Medicare has risen substantially over time.This is most likely a result of

The marginal tax rate for an unmarried taxpayer in the highest taxable income category for 2013 is approximately

The U.S.federal government collects taxes in a number of ways.Rank the following sources of revenue from the largest to the smallest.

In 2011,which category represented the largest category of spending for the U.S.federal government?

In 2011,the average American paid approximately how much to the federal government in taxes?

Which of the following statements is not correct?

The government finances the budget deficit by

From 1950 to today,government spending on Social Security,Medicare,and Medicaid as a percentage of GDP has

In 2011,social insurance taxes represented approximately what percentage of total receipts for the federal government?

The two taxes that together provide the U.S.federal government with almost 80 percent of its revenue are

A tax on the wages that a firm pays its workers is called

The share of federal government spending on healthcare has risen substantially over time.This is most likely a result of

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A