Question 1

In 2005-2006, the magnitude of the federal budget deficit decreased because

Accepted Answer

A) government spending decreased precipitously. 
B) government spending increased precipitously. 
C) income tax rates were significantly increased across the board. 
D) growth in income increased tax receipts by more than government spending increased. 
A) government spending decreased precipitously. 
B) government spending increased precipitously. 
C) income tax rates were significantly increased across the board. 
D) growth in income increased tax receipts by more than government spending increased.

Question 2

The percentage of the federal debt owned by trust funds has

Accepted Answer

A) increased consistently over the past 20 years. 
B) decreased consistently over the past 20 years. 
C) remained remarkable constant over the past 20 years. 
D) increased in good times and decreased in bad times. 
A) increased consistently over the past 20 years. 
B) decreased consistently over the past 20 years. 
C) remained remarkable constant over the past 20 years. 
D) increased in good times and decreased in bad times.

Question 3

If a Balanced Budget Amendment to the U.S. Constitution were passed, during an economic slowdown, such an amendment would

Accepted Answer

A) cause those bad times to be even worse 
B) bolster those bad times so it wasn't as bad 
C) have no impact on the economy 
D) automatically return the economy to a period of growth 
A) cause those bad times to be even worse 
B) bolster those bad times so it wasn't as bad 
C) have no impact on the economy 
D) automatically return the economy to a period of growth

Question 4

The deficit that showed the biggest increase after the events of 2001 through 2004 (the first and second Bush tax cuts, the recession of 2001 and the war of terrorism)was the

Accepted Answer

A) on-budget side. 
B) off-budget side. 
C) must-budget side. 
D) far side. 
A) on-budget side. 
B) off-budget side. 
C) must-budget side. 
D) far side.

Question 5

A decreasing portion of the U.S. national debt is held by

Accepted Answer

A) the public. 
B) the Federal Reserve. 
C) government trust funds. 
D) the public and the Federal Reserve. 
A) the public. 
B) the Federal Reserve. 
C) government trust funds. 
D) the public and the Federal Reserve.

Question 6

Which of the following countries increased its holding of U.S. government debt by the greatest percentage between 2001 and 2011?

Accepted Answer

A) Canada 
B) Saudi Arabia 
C) China 
D) The United Kingdom 
A) Canada 
B) Saudi Arabia 
C) China 
D) The United Kingdom

Question 7

If a Balanced Budget Amendment to the U.S. Constitution would be "pro-cyclical," an economist would consider that to be ____ economic stability.

Accepted Answer

A) slightly helpful for 
B) enormously helpful for 
C) counterproductive to 
D) independent of concerns regarding 
A) slightly helpful for 
B) enormously helpful for 
C) counterproductive to 
D) independent of concerns regarding

Question 8

Which of the following programs is off-budget?

Accepted Answer

A) Interest on the debt. 
B) Defense. 
C) Social Security. 
D) Student loans. 
A) Interest on the debt. 
B) Defense. 
C) Social Security. 
D) Student loans.

Question 9

A Balanced Budget Amendment would be

Accepted Answer

A) procyclical. 
B) countercyclical. 
C) homocyclical. 
D) heterocyclical. 
A) procyclical. 
B) countercyclical. 
C) homocyclical. 
D) heterocyclical.

Question 10

Major causes of the increase in U.S. federal budget deficits between 2001 and 2008 were

Accepted Answer

A) tax cuts, and spending on homeland security, the war in Iraq and the war in Afghanistan. 
B) research into HIV/AIDS and the new lunar landing mission. 
C) investment in decaying public infrastructure and caring for The Lost Generation. 
D) high interest rates and expansionary monetary policy. 
A) tax cuts, and spending on homeland security, the war in Iraq and the war in Afghanistan. 
B) research into HIV/AIDS and the new lunar landing mission. 
C) investment in decaying public infrastructure and caring for The Lost Generation. 
D) high interest rates and expansionary monetary policy.

Question 11

Which of the following programs is on-budget?

Accepted Answer

A) The post office. 
B) Medicare. 
C) Social Security. 
D) Student loans. 
A) The post office. 
B) Medicare. 
C) Social Security. 
D) Student loans.

Question 12

Since the global recession of 2008 and the Troubled Asset Relief Program (TARP), U.S. total public debt as a share of GDP has hovered around

Accepted Answer

A) zero. 
B) 15%. 
C) 30%. 
D) 100%. 
A) zero. 
B) 15%. 
C) 30%. 
D) 100%.

Question 13

Generational accounting refers to the

Accepted Answer

A) wealth of the old versus the wealth of the young. 
B) net tax rate of each generation given the taxes they will pay and the benefits they will receive. 
C) tax rates paid by each generation. 
D) benefits received by each generation. 
A) wealth of the old versus the wealth of the young. 
B) net tax rate of each generation given the taxes they will pay and the benefits they will receive. 
C) tax rates paid by each generation. 
D) benefits received by each generation.

Question 14

Which of the following events occurred during the 2000 to 2005 time-frame and had an important impact on the deficit/surplus projections?

Accepted Answer

A) The tax cuts of 2001 and 2003. 
B) The increase in interest rates from 2001 to 2003. 
C) The increase in inflation rates from 2000 to 2002. 
D) The decrease in unemployment rates from 2002 to 2003. 
A) The tax cuts of 2001 and 2003. 
B) The increase in interest rates from 2001 to 2003. 
C) The increase in inflation rates from 2000 to 2002. 
D) The decrease in unemployment rates from 2002 to 2003.

Question 15

Most economists would place the costs of a new public transit system in the

Accepted Answer

A) operating budget. 
B) capital budget. 
C) social budget. 
D) smart budget. 
A) operating budget. 
B) capital budget. 
C) social budget. 
D) smart budget.

Question 16

Which of the following events occurred during the 1996-2000 time-frame and had an important impact on the deficit/surplus projections?

Accepted Answer

A) A dramatic increase in the price of oil. 
B) A dramatic increase in the rate of inflation. 
C) A dramatic increase in the rate of unemployment. 
D) A dramatic increase in the value of most major stock markets. 
A) A dramatic increase in the price of oil. 
B) A dramatic increase in the rate of inflation. 
C) A dramatic increase in the rate of unemployment. 
D) A dramatic increase in the value of most major stock markets.

Question 17

The budget deficit/surplus projections for 2005 that were made in 2001 were wrong because there was an

Accepted Answer

A) unanticipated tax cut. 
B) unanticipated increase in interest rates. 
C) anticipated increase in immigration. 
D) anticipated increase in defense spending. 
A) unanticipated tax cut. 
B) unanticipated increase in interest rates. 
C) anticipated increase in immigration. 
D) anticipated increase in defense spending.

Question 18

The budget deficit/surplus projections for 2005 that were made in 2001 were wrong because there was an

Accepted Answer

A) unanticipated increase in war-related spending. 
B) unanticipated increase in interest rates. 
C) anticipated increase in immigration. 
D) anticipated increase in defense spending. 
A) unanticipated increase in war-related spending. 
B) unanticipated increase in interest rates. 
C) anticipated increase in immigration. 
D) anticipated increase in defense spending.

Question 19

In inflation adjusted terms, the largest deficits in the twentieth century

Accepted Answer

A) resulted from the Vietnam War. 
B) resulted from World War II. 
C) were caused by huge tax cuts in the 1980s. 
D) resulted from spending increases in the 1990s. 
A) resulted from the Vietnam War. 
B) resulted from World War II. 
C) were caused by huge tax cuts in the 1980s. 
D) resulted from spending increases in the 1990s.

Question 20

The amount of US debt owned by the Chinese

Accepted Answer

A) Dropped from the 1940s through the 1970s, spiked in the 1980s, dropped in the 1990s and early 2000, and rose in the 2010s 
B) continues to rise 
C) dropped to an all-time low in 2015 
D) fell as a result of the Great Recession 
A) Dropped from the 1940s through the 1970s, spiked in the 1980s, dropped in the 1990s and early 2000, and rose in the 2010s 
B) continues to rise 
C) dropped to an all-time low in 2015 
D) fell as a result of the Great Recession

Exam 12: Federal Deficits, Surpluses, and the National Debt

In 2005-2006, the magnitude of the federal budget deficit decreased because

The percentage of the federal debt owned by trust funds has

If a Balanced Budget Amendment to the U.S. Constitution were passed, during an economic slowdown, such an amendment would

The deficit that showed the biggest increase after the events of 2001 through 2004 (the first and second Bush tax cuts, the recession of 2001 and the war of terrorism)was the

A decreasing portion of the U.S. national debt is held by

Which of the following countries increased its holding of U.S. government debt by the greatest percentage between 2001 and 2011?

If a Balanced Budget Amendment to the U.S. Constitution would be "pro-cyclical," an economist would consider that to be ____ economic stability.

Which of the following programs is off-budget?

A Balanced Budget Amendment would be

Major causes of the increase in U.S. federal budget deficits between 2001 and 2008 were

Which of the following programs is on-budget?

Since the global recession of 2008 and the Troubled Asset Relief Program (TARP), U.S. total public debt as a share of GDP has hovered around

Generational accounting refers to the

Which of the following events occurred during the 2000 to 2005 time-frame and had an important impact on the deficit/surplus projections?

Most economists would place the costs of a new public transit system in the

Which of the following events occurred during the 1996-2000 time-frame and had an important impact on the deficit/surplus projections?

The budget deficit/surplus projections for 2005 that were made in 2001 were wrong because there was an

The budget deficit/surplus projections for 2005 that were made in 2001 were wrong because there was an

In inflation adjusted terms, the largest deficits in the twentieth century

The amount of US debt owned by the Chinese

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

Filters