Unit 4 Eco Test Review

Given the three prompts what would be the best title?

• -2 Million to study the breeding habitats of woodchucks

• -$200,000 to see if pigeons follow human economic laws

• -$20 million to redesign a government website

• Pork Barreling

• Monetary Policy

• Fiscal Policy

• Malfunctions of the Government

The United States progressive income tax structure is defined by

• The tax rate remains the same, regardless of income size

• The tax rate increases the total volume of consumer expenditures

• The tax rate declines as income rises

• The tax rate increases as income increases

An example of a tax that is paid the same percentage, despite economic status would be?

• Sales Tax

• Death Tax

• Federal Income Tax

• Corporate Income Tax

Deadline to file taxes

• Midnight April 15

• Midnight May 15th

• Midnight April 5th

• Midnight May 5th

What is Fiscal Policy?

• Manipulation of government spending and taxes to stabilize domestic output, employment, and the price level

• Manipulation of government spending and taxes to achieve greater equality in the distribution of income

• Altering of the interest rates to change aggregate demand

• Fact that equal increases in government spending and taxation will be contractionary

The following characteristics fit which policy?

-Increase road construction projects

-Decrease FICA tax

-Deregulating the mortgage industry

• Expansionary Fiscal Policy

• Contractionary Fiscal Policy

• Expansionary Monetary Policy

• Contractionary Monetary Policy

Suppose that the economy is in the midst of a recession. Which of the following policies would be consistent with active fiscal policy?

• Congressional proposal to incur a federal surplus to pay off public debt

• A reduction in agricultural subsidies and veterans' benefits

• A postponement of a highway construction program

• A reduction in federal tax rates on personal and corporate items

Which is a fiscal policy decision to move an economy out of a recession

• Increase taxes to stimulate economic growth

• Lower interest rates to increase money circulation

• Reduce government spending to lower the deficit

• Cutting taxes to put more money in consumer pockets

Know what contractionary Fiscal Policy and Discretionary Spending is

• I looked at my notes

• I looked at my notes

• I looked at my notes

• I don't want to look at my notes

  (click it I dare you)

Does the spending multiplier effect state that a change in spending causes a larger change in the economy?

• Yes

• No