ECO/302 Intermediate Macroeconomics Week 8 Quiz - Strayer

ECO 302 Week 8 Quiz - Strayer 

Chapter 12

 

TRUE/FALSE

 

            1.         Government can use its funds to purchase goods or transfer money to people.

 

                                     

 

            2.         If a household’s transfer payment less taxes is greater than zero, then government is a net source of funds for that household.

 

                                     

 

            3.         A permanent increase in government purchases causes an increase in the real rate of interest.

 

                                     

 

            4.         A permanent increase in government purchases increases GDP.

 

                                     

 

            5.         A temporary increase in government purchases increases GDP.

 

                                     

 

            6.         A temporary increase in government expenditures will reduce gross investment.

 

                                     

 

            7.         From 1929 to the present, government expenditures as a ratio to GDP have risen to equal about one-third.

 

                                     

 

            8.         U.S. government transfer payments in the form of unemployment insurance are equivalent to about ten percent of GDP.

 

                                     

 

            9.         The largest expansions in transfer payments at the U.S. federal level have been in Social Seccurity and Medicare.

 

                                     

 

            10.       Across a large sample of countries, the U.S. ratio of total government expenditure to GDP is near the median.

 

                                     

 

 

MULTIPLE CHOICE

 

            1.         The biggest category of government purchases in the US is:

a.         state and local purchases.       c.         federal government purchases.

b.         defense purchases.      d.         federal transfer payments.

 

 

                                     

 

            2.         Government transfer payment as a percentage of GDP have been:

a.         generally rising.           c.         cyclical.

b.         generally falling.          d.         constant.

 

 

                                     

 

            3.         The fastest growing part of the federal government budget since WWII is:

a.         interest payments on the debt.           c.         transfer payments.

b.         defense spending.        d.         infrastructure.

 

 

                                     

 

            4.         State and local governments purchases include:

a.         defense spending.        c.         social security retirement spending.

b.         education spending.    d.         all of the above.

 

 

                                     

 

            5.         The biggest category of state and local expenditures are:

a.         education.        c.         defense.

b.         transfer payments.      d.         none of the above.

 

 

                                     

 

            6.         State and local governments purchases are about half:

a.         interest on debt.          c.         defense.

b.         transfer payments.      d.         none of the above.

 

 

                                     

 

            7.         The government budget constraint without borrowing is:

a.         Gt + Vt = Tt + (Mt - Mt-1 )/P          c.         Gt - Vt = Tt

b.         Gt  = Tt +  Vt             d.         Gt - Vt = Tt - (Mt - Mt-1 )/P

 

 

                                     

 

            8.         The government budget constraint is:

a.         government purchases less transfer payments equal revenue from money growth less taxes.          c.         government purchases plus taxes equal transfer payment plus revenue from money creation.

b.         government purchases plus transfer payments equal taxes plus revenue from money growth.        d.         government purchases times transfer payment equals taxes times revenue from money creation.

 

 

                                     

 

            9.         The government’s budget constraint is:

a.         Gt + Vt = Tt + (Mt - Mt-1 )/P          c.         -Gt  = Vt - Tt, if revenue from money creation is zero.

b.         Gt + Vt - Tt = (Mt - Mt-1 )/P           d.         all of the above.

 

 

                                     

 

            10.       The government’s budget is:

a.         government purchases plus transfer payments equal taxes plus revenue from money creation.       c.         the negative of government equals transfers less taxes, if revenue from money creation is zero.

b.         government purchases plus transfers less taxes equal revenue from money creation.           d.         all of the above.

 

 

                                     

 

            11.       If there is no revenue from money growth, then the government’s budget constraint without borrowing is:

a.         Gt + Vt = Tt.  c.         Gt = Vt -  Tt

b.         Gt = Vt + Tt.  d.         all of the above.

 

 

                                     

 

            12.       If the money supply does not change, then the government’s budget constraint without borrowing is:

a.         Gt - Vt = Tt    c.         -Gt = Vt - Tt

b.         Gt = Vt -  Tt   d.         all of the above.

 

 

                                     

 

            13.       Among the government’s sources of funds are;

a.         transfer payments.      c.         government purchases.

b.         tax revenue.     d.         all of the above.

 

 

                                     

 

            14.       Among the government’s sources of funds are;

a.         transfer payments.      c.         real revenue from printing money.

b.         government purchases.           d.         all of the above.

 

 

                                     

 

            15.       Among the government’s uses of funds are;

a.         transfer payments.      c.         real revenue from printing money.

b.         tax revenue.     d.         all of the above.

 

 

                                     

 

            16.       Among the government’s uses of funds are;

a.         government purchases.           c.         real revenue from printing money.

b.         tax revenue.     d.         all of the above.

 

 

                                     

 

            17.       In the market clearing model without government borrowing, the net effect of government on households is an increase in funds of: 

a.         transfer payments times taxes.           c.         taxes less transfer payments.

b.         transfer payments plus taxes.             d.         transfer payments less taxes.

 

 

                                     

 

            18.       If a household’s  transfer payments less taxes is positive, then the government:

a.         is a net source of funds for that household.    c.         is a net drain on that household.

b.         is a net use of fund of funds for that household.        d.         does not affect that household’s budget constraint.

 

 

                                     

 

            19.       If a household’s  transfer payments less taxes is negative, then the government:

a.         is a net source of funds for that household.    c.         is a net subsidizer of that household.

b.         is a net use of fund of funds for that household.        d.         does not affect that household’s budget constraint.

 

 

                                     

 

            20.       According to the market clearing model a permanent increase in government purchases causes:

a.         a decrease in consumption.     c.         an increases in real GDP.

b.         an increases in the real interest rate.   d.         all of the above.

 

 

Chapter 13

 

TRUE/FALSE

 

            1.         The marginal tax rate is the change in taxes when taxable income change one unit.

 

                                     

 

            2.         The term (1 -  w) is the faction of labor income the worker gets to keep.

 

                                     

 

            3.         An increase in the marginal tax on labor income, increases the supply of labor.

 

                                     

 

            4.         An increase in the marginal tax on labor income, decreases the demand for capital services.

 

                                     

 

            5.         A decrease in the marginal tax on asset income, reduces investment short run and the capital stock and GDP in the long run.

 

                                     

 

            6.         An increase in the marginal tax rate on labor income reduces overall market activity, as gauged by GDP.

 

                                     

 

            7.         The largest sources of tax revenue for the U.S. federal government include the individual income tax and social-insurance contributions.

 

                                     

 

            8.         The largest source of tax revenue for the U.S. federal government is the corporate-profit tax.

 

                                     

 

            9.         U.S. data show that state and local government revenues currently far exceed federal government revenues.

 

                                     

 

            10.       A graduated income-tax rate has a marginal tax rate which equals the average tax rate.

 

                                     

 

 

 

MULTIPLE CHOICE

 

            1.         The US Federal government gains revenue from:

a.         individual income taxes.          c.         excise taxes.

b.         social insurance taxes. d.         all of the above.

 

 

                                     

 

            2.         The US Federal government gains revenue from:

a.         property taxes.           c.         UN grants.

b.         social insurance taxes. d.         all of the above.

 

 

                                     

 

            3.         The US Federal government gains revenue from:

a.         property taxes.           c.         individual income taxes.

b.         sales taxes.      d.         all of the above.

 

 

                                     

 

            4.         The US Federal government gains revenue from:

a.         revenue from money creation.            c.         sales taxes.

b.         social insurance taxes. d.         all of the above.

 

 

                                     

 

            5.         The US Federal government gains revenue from:

a.         property taxes.           c.         UN grants.

b.         excise taxes and customs.        d.         all of the above.

 

 

  • Item #: 355

ECO 302 Week 8 Quiz - Strayer

Price: $9.00
* Marked fields are required.
Qty: *
Reviews (0) Write a Review
No Reviews. Write a Review