Exam 9: The Mixed Economy of the United States

Concerning the Social Security system, which of the following is false?

Which tax is most consistent with the benefits-received principle?

To finance its debt, the federal government

The Social Security tax has both proportional and regressive features.

A tax is regressive if it takes a smaller fraction of income as income rises.

Because the distribution of income in the United States is quite unequal, many people look to the federal income tax to redistribute income from the rich to the poor.

Which form of business is numerically dominant in the U.S.?

The Social Security trust funds are simply accounts that are located at the U.S. Treasury.

A person approaching retirement age would be least likely to object to which of the following reforms of the Social Security system?

Consumer spending by households includes all of the following categories except

Durable goods are items such as refrigerators that have an expected life of one year or more.

The U.S. economy would best be characterized as

Social Security trust funds are

Which of the following is a disadvantage of a corporation, when compared to a partnership or sole proprietorship?

Which form of business accounts for the largest share of total sales (output) in the U.S.?

A major concern about the future of the Social Security program is

Social Security

In the past 20 years, the income gap between the rich and poor has decreased.

The various exemptions, deductions, and credits permitted by the Internal Revenue Service ______ of the personal income tax system

All of the following are examples of government purchases except