Economics Semester Test Review

The sum of all government borrowing up to that time, minus the borrowings that have been repaid. Is called what?

• Debt

• Surplus

• Deficit

• Balanced Budget

By lowering taxes how does some in the federal government think that will expand the economy?

• Individuals will have more money to spend

• Individuals will have less to spend

• It will cause businesses to lay off workers

• There will be less money in circulation

By increasing taxes how does some in the federal government think that will slow down economic growth?

• Individuals will have more money to spend

• Individuals will have less to spend

• It will cause businesses to lay off workers

• There will be less money in circulation

What does your taxable income NOT include?

• Salaries

• Wages

• Tips

• All of these

What type of tax is the Federal Government’s main source of revenue?

• Sales

• Income

• Pay-as-you-earn

• Property

What is the primary way the US government collects money?

• Taxes

• Bonds

• Investment accounts

• Banks

General increase in prices is called what?

• Deflation

• Stagflation

• Poverty

• Inflation

By looking at _______________ numbers economists can measure how healthy the economy is at any given time.

• Unemployment

• GNP

• Business Cycle

• Stock market

The amount of money the government borrows and when the government takes in less than they spend. Is called what?

• Debt

• Surplus

• Deficit

• Balanced Budget

In 2018, President Trump signs a bill creating more tax cuts.

• Expansionary Policy

• Contractionary Policy