First nine weeks review part 2

Deficit financing is:

• A type of proportional tax

• A public assistance program

• Balanced budgeting

• Government spending

Programs aimed only at people who are poor or disabled are known as

• Social insurance programs

• Government programs

• Federally funded programs

• Public assistance programs

Property taxes, which are calculated as a percentage of the value of a home, are an example of

• The benefits-received principle

• A regressive tax

• The ability-to-pay principle

• A proportional tax

Since the end of World War II, the size of the U.S. government

• Has remained the same

• Has grown proportionally to the increase in the population

• Has grown much faster than the population

• Has not kept up with the increase in the population

Single parents in need of aid to raise their young children may qualify for

• Public goods

• Medicaid

• Social Security

• Temporary Assistance to Needy Families

According to some economists, stagflation is caused by

• Demand-pull inflation

• Cost-push inflation

• Recessionary pricing

• Too rapid expansion of the economy

Unemployment caused by up and down fluctuations in the business cycle is called:

• Cyclical unemployment

• Structural unemployment

• Seasonal unemployment

• Frictional unemployment

The economist most closely associated with monetarism is:

• Adam Smith

• Alan Greenspan

• John Maynard Keynes

• Milton Friedman

Economists use the term “leakage” to refer to:

• Money that is wasted

• Income that has no effect on aggregate demand

• Income that does not follow the circular flow

• Money that is retained by businesses

High unemployment is usually a sign that

• The economy is getting better

• Government spending is on the increase

• Purchasing has slowed

• Government has increased the money supply