Economics Chapters 6-9 - Assignment Essays

question

The fundamental limitation on public expenditures during a specific time interval is expressed by

answer

the government budget constraint

question

The average tax rate is the

answer

total tax paid divided by total income.

question

A specified interval of income to which a specific and unique marginal tax rate is applied is called

answer

a tax bracket.

question

A tax where people with lower incomes pay a higher percentage of their income in tax than do people with higher incomes is called a

answer

regressive tax.

question

How is the federal income tax structured?

answer

The rate at which income is taxed increases as income increases. Up to a limit, additional amounts of income are taxed at ever greater rates.

question

Which of the following is NOT true of the federal unemployment insurance tax?

answer

It is paid by employers and employees.

question

The United States Federal government receives most of its tax revenues from

answer

individual income taxes.

question

Assessing taxes by charging a tax rate equal to a fraction of the market price of each unit purchased is known as

answer

ad valorem taxation.

question

Dynamic tax analysis shows that a likely response to an increase in a tax rate is

answer

a decrease in the tax base.

question

An excise tax of 60 cents is levied on a product. As a result of the tax, the price of the product goes from $1 to $1.40. Which of the following is true?

answer

The consumer pays the majority of the tax but not the entire tax.

question

The imposition of an excise tax on a product will ________ the market price of the product and ________ the equilibrium quantity.

answer

increase; decrease

question

Which of the following statements is true?

answer

The U.S. unemployment rate exceeded 25 percent during the Great Depression.

question

The unemployment rate is calculated as

answer

the number of unemployed people/the number of people in the labor force. x100

question

The type of unemployment that rises as the economy goes into a recession is called

answer

cyclical

question

Structural unemployment is related to the movement of workers from low-paying to high-paying jobs.

answer

False

question

Jim's favorite breakfast is two eggs, 1/5 lb. of bacon, 1/7 lb. of white toast, 1/6 can (16 ounce can) of frozen concentrate orange juice, and 1 lb. of grapefruit. The following table contains 1991 and 2001 prices for these five items. Using 1991 as the base year, compute the price index for Jim's breakfast for 2001.

answer

107.5

question

In the base year, the price index will always have a value of zero.

answer

False

question

The ________ is a price index measuring the changes in prices of all new goods and services produced in the economy.

answer

GDP deflator

question

Which of the following is correct?

answer

Real rate of interest = (Nominal rate of interest- Anticipated rate of inflation)

question

People anticipate the inflation rate to be 8%. Banks are making loans at a 12% interest rate. Therefore,

answer

the real rate of interest is 4% and the nominal rate is 12%.

question

Typically during a recession

answer

incomes fall and unemployment rises.

question

Total income can be viewed as the sum of

answer

payments to factor services such aspa land, labor, capital, and entrepreneurial activity.
the dollar value of output produced since total income and total production are equal.
wages, rents, interest, and profits.
Your answer is not correct.D.
All of the above.

question

The simple circular flow model shows that

answer

total income received by households must be equal to the dollar value of all goods and services produced.

question

Which of the following statements is not true about the use of GDP as a measure of national welfare?

answer

GDP is a useful measure of national welfare since it excludes nonmarket transactions.

question

All of the following transactions are excluded from the measure of GDP except

answer

paying your dentist to have your teeth cleaned.

question

The largest component of GDP by far is

answer

personal consumption expenditures.

question

If a household purchases a new car and a new refrigerator, this would be classified as spending on

answer

consumer durables.

question

Suppose social security contributions rise by $1 billion while social security benefits also rise by $1 billion. Further, personal income taxes fall by $500 million. As a result,

answer

disposable income should increase while personal income and national income are unchanged.

question

Disposable personal income refers to the income used by households for all purchases of nondurable goods during a year.

answer

False

question

If nominal GDP increases, it is possible that

answer

any of the above might have happened.

question

The adjustment in exchange rate conversions that takes into account differences in the true cost of living across countries is called

answer

purchasing power parity.

question

Which of the following is a true statement about comparing world incomes?

answer

Adjusting world incomes for purchasing power gives a more accurate view than using market foreign exchange rates.

question

Why are politicians and economists concerned about the economic growth rate in the U.S.?

answer

Small differences in the rate of economic growth can make large differences in the standard of living over time.

question

All of the following are benefits of economic growth except

answer

urban congestion.

question

The new growth theory argues that

answer

technology must be considered a separate factor of production that is sensitive to economic incentives.

question

For economic growth to take place, a country must save. But, for saving to actually generate economic growth,

answer

saving must be channeled into investment.

question

According to the new growth theory

answer

knowledge about how to produce goods and services is an important source of economic growth.

question

Which of the following statements is true?

answer

A higher saving rate allows us to invest in our capital stock and results in economic growth.

1 of 38

question

The fundamental limitation on public expenditures during a specific time interval is expressed by

answer

the government budget constraint

question

The average tax rate is the

answer

total tax paid divided by total income.

question

A specified interval of income to which a specific and unique marginal tax rate is applied is called

answer

a tax bracket.

question

A tax where people with lower incomes pay a higher percentage of their income in tax than do people with higher incomes is called a

answer

regressive tax.

question

How is the federal income tax structured?

answer

The rate at which income is taxed increases as income increases. Up to a limit, additional amounts of income are taxed at ever greater rates.

question

Which of the following is NOT true of the federal unemployment insurance tax?

answer

It is paid by employers and employees.

question

The United States Federal government receives most of its tax revenues from

answer

individual income taxes.

question

Assessing taxes by charging a tax rate equal to a fraction of the market price of each unit purchased is known as

answer

ad valorem taxation.

question

Dynamic tax analysis shows that a likely response to an increase in a tax rate is

answer

a decrease in the tax base.

question

An excise tax of 60 cents is levied on a product. As a result of the tax, the price of the product goes from $1 to $1.40. Which of the following is true?

answer

The consumer pays the majority of the tax but not the entire tax.

question

The imposition of an excise tax on a product will ________ the market price of the product and ________ the equilibrium quantity.

answer

increase; decrease

question

Which of the following statements is true?

answer

The U.S. unemployment rate exceeded 25 percent during the Great Depression.

question

The unemployment rate is calculated as

answer

the number of unemployed people/the number of people in the labor force. x100

question

The type of unemployment that rises as the economy goes into a recession is called

answer

cyclical

question

Structural unemployment is related to the movement of workers from low-paying to high-paying jobs.

answer

False

question

answer

107.5

question

In the base year, the price index will always have a value of zero.

answer

False

question

The ________ is a price index measuring the changes in prices of all new goods and services produced in the economy.

answer

GDP deflator

question

Which of the following is correct?

answer

Real rate of interest = (Nominal rate of interest- Anticipated rate of inflation)

question

People anticipate the inflation rate to be 8%. Banks are making loans at a 12% interest rate. Therefore,

answer

the real rate of interest is 4% and the nominal rate is 12%.

question

Typically during a recession

answer

incomes fall and unemployment rises.

question

Total income can be viewed as the sum of

answer

question

The simple circular flow model shows that

answer

total income received by households must be equal to the dollar value of all goods and services produced.

question

Which of the following statements is not true about the use of GDP as a measure of national welfare?

answer

GDP is a useful measure of national welfare since it excludes nonmarket transactions.

question

All of the following transactions are excluded from the measure of GDP except

answer

paying your dentist to have your teeth cleaned.

question

The largest component of GDP by far is

answer

personal consumption expenditures.

question

If a household purchases a new car and a new refrigerator, this would be classified as spending on

answer

consumer durables.

question

Suppose social security contributions rise by $1 billion while social security benefits also rise by $1 billion. Further, personal income taxes fall by $500 million. As a result,

answer

disposable income should increase while personal income and national income are unchanged.

question

Disposable personal income refers to the income used by households for all purchases of nondurable goods during a year.

answer

False

question

If nominal GDP increases, it is possible that

answer

any of the above might have happened.

question

The adjustment in exchange rate conversions that takes into account differences in the true cost of living across countries is called

answer

purchasing power parity.

question

Which of the following is a true statement about comparing world incomes?

answer

Adjusting world incomes for purchasing power gives a more accurate view than using market foreign exchange rates.

question

Why are politicians and economists concerned about the economic growth rate in the U.S.?

answer

Small differences in the rate of economic growth can make large differences in the standard of living over time.

question

All of the following are benefits of economic growth except

answer

urban congestion.

question

The new growth theory argues that

answer

technology must be considered a separate factor of production that is sensitive to economic incentives.

question

For economic growth to take place, a country must save. But, for saving to actually generate economic growth,

answer

saving must be channeled into investment.

question

According to the new growth theory

answer

knowledge about how to produce goods and services is an important source of economic growth.

question

Which of the following statements is true?

answer

A higher saving rate allows us to invest in our capital stock and results in economic growth.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order