PFL UNIT 3 (CBA2)

What is the main focus of macroeconomics?

• Examining individual markets

• Examining national and global economies

• Examining consumer behavior

• Examining business competition

GDP stands for:

• Gross Domestic Profit

• General Domestic Product

• Government Defined Product

• Gross Domestic Product

To be classified as unemployed, a person must:

• Have a job but want a new one

• Not be working and have looked for a job within the past 4 weeks

• Be receiving unemployment benefits

• Have worked less than 10 hours in the past week.

Inflation refers to:

• A change in the price level of all goods and services

• An increase in GDP

• A decrease in consumer spending

• A decrease in unemployment.

What is the purpose of taxes?

• Mandatory payments for government services

• Personal wealth accumulation

• To reduce personal income

• To stimulate competition

Which of the following is an example of a progressive tax?

• Sales tax

• Social Security tax

• State income tax

• Excise tax

What is a regressive tax?

• Takes a larger percentage from higher-income earners

• Is based solely on wealth

• Takes a larger percentage from lower-income groups

FICA includes:

• Only Medicare taxes

• Only Social Security taxes

• Both Social Security and Medicare taxes

• Only federal income taxes

Medicare provides insurance for:

• Individuals under 65

• Only low-income families

• Individuals aged 65 and older

• All citizens

What does Medicaid offer?

• Insurance for senior citizens

• Coverage for low-income families and people with disabilities

• Retirement funds

• Tax credits for healthcare