Econ Unit 3 Review

Which would an economist say best describes a "trust"?

• a feeling in a market
• a public good
• an illegal combination
• a federal order

The government does not try to eliminate all monopolies. Why?

• It would be impossible.
• Not all monopolies are bad.
• The government itself is a monopoly.
• There aren't any monopolies anymore.

"Those who benefit from government goods and services should pay in proportion to the amount of benefits they receive."  So states the

• benefit principle
• ability-to-pay principle
• incidence of tax
• alternative minimum tax

An effective tax is one that exhibits one or more of the following characteristics.

• equity
• simplicity
• efficiency
• all three of these

The terms proportional, progressive, and regressive refer to 

• criteria for taxes
• types of taxes
• principles of taxation
• goals of reform

In discussing taxes, which is the opposite of regressive?

• alternative
• flat
• value-added
• progressive

What is the total amount borrowed from investors to finance the government's deficit spending?

• balanced budget
• entitlement
• national debt
• per capita

What is a program of benefit that uses established eligibility requirements to provide health, nutritional, or income supplements to individuals?

• per capita
• private sector
• balanced budget
• entitlement

Which is the primary source of revenue for the federal government?

• borrowing
• duties
• taxes
• fees

Which type of tax is levied on specific items or services, including gasoline and telephone services?

• excise tax
• estate tax
• customs duty
• gift tax