Question 1

Which of the following is the largest source of tax revenue for the U.S.federal government?

Accepted Answer

A)  individual income tax 
B)  corporate income tax 
C)  Social Security and Medicare taxes 
D)  estate taxes 
A)  individual income tax 
B)  corporate income tax 
C)  Social Security and Medicare taxes 
D)  estate taxes

Question 2

The debt-to-GDP ratio for the United States has increased significantly over time since the beginning of World War II.

Accepted Answer

A) True 
 B)False

Question 3

Social Security benefits have become more generous over time.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following descriptions of the "government deficit" is incorrect?

Accepted Answer

A)  A deficit occurs when spending is greater than revenue. 
B)  The deficit is caused by a shortage of tax revenue. 
C)  A deficit is the difference between federal spending and revenues. 
D)  The deficit is the annual change in the national debt. 
A)  A deficit occurs when spending is greater than revenue. 
B)  The deficit is caused by a shortage of tax revenue. 
C)  A deficit is the difference between federal spending and revenues. 
D)  The deficit is the annual change in the national debt.

Question 5

In 2013,the U.S.federal government received about _____ in tax revenue.

Accepted Answer

A)  $2.8 billion 
B)  $578 billion 
C)  $2.8 trillion 
D)  $578 trillion 
A)  $2.8 billion 
B)  $578 billion 
C)  $2.8 trillion 
D)  $578 trillion

Question 6

Who appears to pay the FICA tax?

Accepted Answer

A)  mostly employees 
B)  mostly employers 
C)  employees and employers in equal amounts 
D)  Congress 
A)  mostly employees 
B)  mostly employers 
C)  employees and employers in equal amounts 
D)  Congress

Question 7

If tax rates are 10% on income up to $10,000,20% for income between $10,001 and $20,000,and 30% for income over $20,000,the marginal tax rate for a person earning $25,000 is:

Accepted Answer

A)  10%. 
B)  20%. 
C)  25%. 
D)  30%. 
A)  10%. 
B)  20%. 
C)  25%. 
D)  30%.

Question 8

More than half of the burden of the FICA tax falls on workers,not employers.

Accepted Answer

A) True 
 B)False

Question 9

Economists are more concerned about the future than the current debt-to-GDP ratio.

Accepted Answer

A) True 
 B)False

Question 10

Explain what a flat tax is and discuss its advantages and disadvantages.

Accepted Answer

A flax tax is a constant tax rate applie

Question 11

For a progressive income tax system,the marginal tax rate is higher than the average tax rate.

Accepted Answer

A) True 
 B)False

Question 12

To balance the U.S.budget,it is sufficient to eliminate Congressional earmarks.

Accepted Answer

A) True 
 B)False

Question 13

All taxes on businesses,such as the payroll tax and corporate income tax,are actually paid by individual human beings.Explain this argument.

Accepted Answer

Businesses can pass the tax burden onto

Question 14

Income that is not subject to taxation is called:

Accepted Answer

A)  marginal income. 
B)  average income. 
C)  exempt income. 
D)  excluded income. 
A)  marginal income. 
B)  average income. 
C)  exempt income. 
D)  excluded income.

Question 15

The largest source of revenue for the U.S.federal government is:

Accepted Answer

A)  the corporate income tax. 
B)  the individual income tax. 
C)  excise taxes,such as taxes on gasoline and alcohol. 
D)  Social Security and Medicare taxes. 
A)  the corporate income tax. 
B)  the individual income tax. 
C)  excise taxes,such as taxes on gasoline and alcohol. 
D)  Social Security and Medicare taxes.

Question 16

What is the difference between the deficit and national debt?

Accepted Answer

The deficit is the difference between fe

Question 17

The United States' debt-to-GDP ratio peaked at 108% in 1946 and steadily declined until 1980.It steadily increased throughout the 1980s.It began to fall again in the 1990s.The debt-to-GDP ratio stayed fairly constant throughout the early 2000s,but began to increase quickly around 2008 and continues to rise today.Explain these patterns in the debt-to-GDP ratio.What was going on in the economy to cause these patterns?

Accepted Answer

In 1946,the debt-to-GDP ratio was the hi

Question 18

The tax deduction for interest paid on home mortgages tends to:

Accepted Answer

A)  increase housing prices. 
B)  decrease housing prices. 
C)  have no impact on housing prices. 
D)  make housing prices unpredictable. 
A)  increase housing prices. 
B)  decrease housing prices. 
C)  have no impact on housing prices. 
D)  make housing prices unpredictable.

Question 19

The U.S.federal income tax system is regressive.

Accepted Answer

A) True 
 B)False

Question 20

Individuals receive different Social Security benefits depending on their wealth,life expectancy,marital status,and other factors.

Accepted Answer

A) True 
 B)False

Which of the following is the largest source of tax revenue for the U.S.federal government?

The debt-to-GDP ratio for the United States has increased significantly over time since the beginning of World War II.

Social Security benefits have become more generous over time.

Which of the following descriptions of the "government deficit" is incorrect?

In 2013,the U.S.federal government received about _____ in tax revenue.

Who appears to pay the FICA tax?

If tax rates are 10% on income up to $10,000,20% for income between $10,001 and $20,000,and 30% for income over $20,000,the marginal tax rate for a person earning $25,000 is:

More than half of the burden of the FICA tax falls on workers,not employers.

Economists are more concerned about the future than the current debt-to-GDP ratio.

Explain what a flat tax is and discuss its advantages and disadvantages.

For a progressive income tax system,the marginal tax rate is higher than the average tax rate.

To balance the U.S.budget,it is sufficient to eliminate Congressional earmarks.

All taxes on businesses,such as the payroll tax and corporate income tax,are actually paid by individual human beings.Explain this argument.

Income that is not subject to taxation is called:

The largest source of revenue for the U.S.federal government is:

What is the difference between the deficit and national debt?

The tax deduction for interest paid on home mortgages tends to:

The U.S.federal income tax system is regressive.

Individuals receive different Social Security benefits depending on their wealth,life expectancy,marital status,and other factors.

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters

Exam 17: The Federal Budget- Taxes and Spending

Which of the following is the largest source of tax revenue for the U.S.federal government?

The debt-to-GDP ratio for the United States has increased significantly over time since the beginning of World War II.

Social Security benefits have become more generous over time.

Which of the following descriptions of the "government deficit" is incorrect?

In 2013,the U.S.federal government received about _____ in tax revenue.

Who appears to pay the FICA tax?

If tax rates are 10% on income up to $10,000,20% for income between $10,001 and $20,000,and 30% for income over $20,000,the marginal tax rate for a person earning $25,000 is:

More than half of the burden of the FICA tax falls on workers,not employers.

Economists are more concerned about the future than the current debt-to-GDP ratio.

Explain what a flat tax is and discuss its advantages and disadvantages.

For a progressive income tax system,the marginal tax rate is higher than the average tax rate.

To balance the U.S.budget,it is sufficient to eliminate Congressional earmarks.

All taxes on businesses,such as the payroll tax and corporate income tax,are actually paid by individual human beings.Explain this argument.

Income that is not subject to taxation is called:

The largest source of revenue for the U.S.federal government is:

What is the difference between the deficit and national debt?

The tax deduction for interest paid on home mortgages tends to:

The U.S.federal income tax system is regressive.

Individuals receive different Social Security benefits depending on their wealth,life expectancy,marital status,and other factors.

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters