Question 1

A ______ tax is a tax that increases with the amount of income a person earns.

Accepted Answer

The answer of A ______ tax is a tax that...

Question 2

Describe the positions that opposing sides take with regard to the U.S.balance of trade.Why do some argue that a negative balance of trade is undesirable, while others argue that a negative balance of trade is not a problem?

Accepted Answer

The answer of Describe the positions that opposing sides take...

Question 3

Which of the following economic policy concerns is often present with a growing economy and high levels of employment?

Accepted Answer

A)  increasing deficits 
B)  high labor-force participation 
C)  increasing entitlement costs 
D)  growing inflation

Question 4

______ refers to the sum total of the use of taxing and spending by the federal government.

Accepted Answer

The answer of ______ refers to the sum total of...

Question 5

A CPI between ______% and ______% is one that most government policy makers can accept as tolerable.

Accepted Answer

A)  1; 2 
B)  1; 4 
C)  1; 6 
D)  1; 8

Question 6

Discuss the following national trends related to the U.S.workforce: labor force participation by women and unemployment rates of certain demographic groups.

Accepted Answer

The answer of Discuss the following national trends related to...

Question 7

Which of the following is NOT a tool of economic policy making?

Accepted Answer

A)  regulation 
B)  taxation 
C)  efficiency 
D)  establishment of the budget

Question 8

What is the difference between the national deficit and the national debt?

Accepted Answer

A)  The debt is the yearly amount government expenses exceed revenue. The deficit is the accumulation of the deficits over the years. 
B)  The deficit is based on the distribution of entitlement programs. The debt is the ceiling for the federal budget. 
C)  The deficit is the yearly amount government expenses exceed revenue. The debt is the accumulation of the deficits over the years. 
D)  The deficit is the portion of the federal budget allocated by Congress. The debt is the portion of the budget allocated by the executive branch.

Question 9

Which statement accurately reflects how regulatory policy is typically used with regard to the economy?

Accepted Answer

A)  Regulations are typically enacted to protect society from unsafe business practices or negative externalities as opposed to addressing economic growth. 
B)  Regulations are typically applied to the service sector as opposed to manufacturing. 
C)  Regulations are used to control the money supply and discount rate. 
D)  Regulations are applied to address unique situations that might apply to a discrete issue or single business.

Question 10

Which statement is true describing the U.S.overall unemployment rate in recent years?

Accepted Answer

A)  The unemployment rate has steadily increased from a low of 3% in 2001 to more than 14% in 2014. 
B)  The unemployment rate rose from 10% to 16% during the recession and now has returned to 14%. 
C)  For most of the 2000s, the unemployment rate has remained around 10%. 
D)  The unemployment rate rose to more than 9% during the recession and recently has returned to rates typical of recent years of 4-6%.

Question 11

Which of the following terms refers to the ability of a method of taxation to keep up with inflation and economic growth?

Accepted Answer

A)  vertical equity 
B)  buoyancy 
C)  redistributive effects 
D)  progressive taxation

Question 12

Explain the difference between fiscal policy and monetary policy.How does each tool work? Who is responsible for them?

Accepted Answer

The answer of Explain the difference between fiscal policy and...

Question 13

______ is critical to all other areas of policy but is not often recognized for its central role.

Accepted Answer

A)  Education policy 
B)  Health-care policy 
C)  Federal policy 
D)  Economic policy

Question 14

The accumulation of deficits over time is known as the federal ______.

Accepted Answer

The answer of The accumulation of deficits over time is...

Question 15

Which statement summarizes the changing patterns of employment in the United States in recent years?

Accepted Answer

A)  Higher unemployment rates are seen among certain demographic groups more than others. 
B)  The types of jobs available are shifting away from manufacturing toward the service sector. 
C)  A greater number of households have all adults in the workforce. 
D)  all of these

Question 16

The economic goal of stable prices is typically measured using the ______.

Accepted Answer

A)  balance of trade (BOT) 
B)  gross domestic product (GDP) 
C)  Monetary Supply Index (MSI) 
D)  Consumer Price Index (CPI)

Question 17

______ are individuals who are concerned about the negative balance of trade.

Accepted Answer

A)  Labor union representatives 
B)  Interventionists 
C)  Lobbyists 
D)  Protectionists

Question 18

Which of the following is NOT a goal of economic policy?

Accepted Answer

A)  economic growth 
B)  full employment 
C)  low inflation 
D)  increasing imports

Question 19

How has the nature of U.S.jobs changed in the past few decades?

Accepted Answer

A)  Jobs in the service sector are growing while the manufacturing sector is decreasing. 
B)  Construction jobs have rapidly decreased while retail jobs are increasing. 
C)  Government jobs have rapidly increased due to the growing size of government. 
D)  Jobs in the manufacturing sector are growing while the service sector is decreasing.

Question 20

Which of the following is an example of a regressive tax?

Accepted Answer

A)  income tax 
B)  medicare tax 
C)  sales tax 
D)  payroll tax

Exam 7: Economic and Budgetary Policy