tcc1

A government goods or services includes.

• all of the above

• national defence

• parks

• bridges

Which institution typically manages monetary policy?

• Ministry of Finance

• Treasury Department

• Department of Commerce

• Central Bank

If government spending exceeds government receipts, the government has a

• budget deficit. Other things the same, the deficit rises if taxes rise.

• budget surplus. Other things the same the surplus rises if taxes fall.

•   budget deficit. Other things the same, the deficit rises if taxes fall.

• budget surplus. Other things the same, the surplus rises if taxes rise.

If everyone benefits from helping the poor,

• government intervention cannot improve social well-being.

• taxing the wealthy to raise living standards of the poor can potentially make everyone better off.

• eliminating taxes aimed at redistributing income will make rich people better off.

• private markets can adequately provide charity programs to help the poor, despite free-rider problems.

According to Arthur Laffer, the graph that represents the amount of tax revenue (measured on the vertical axis) as a function of the size of the tax (measured on the horizontal axis) looks like

• an upside-down U.

• a U

• a horizontal straight line.

• an upward-sloping line or curve.

A budget deficit

• is the accumulation of years of government overspending.

• occurs when government receipts are equal to spending.

• occurs when government spending is less than receipts.

• occurs when government receipts are less than spending.

Suppose that in 2020 the average citizen's federal tax bill is $12,466, and total federal spending is $10,824 per person. In 2020, the federal government will have

• horizontal equity.

• vertical equity.

• a budget deficit.

• a budget surplus.

Which of the following is NOT a function of public finance?

• Public expenditure management

• Price fixing in the market

• Income redistribution

• Taxation

Public schools in the United States are operated by the government. This is an example of:

• a subsidy.

•   restriction or mandate of private sale or purchase.

•   public provision.

• public financing of private provision.

Which of the following statements is true for markets in which the demand curve slopes downward and the supply curve slopes upward?

• As the size of the tax increases, tax revenue continually rises and deadweight loss continually falls.

• As the size of the tax increases, tax revenue rises initially, but it eventually begins to fall; deadweight loss continually rises

• As the size of the tax increases, tax revenue rises initially, but it eventually begins to fall; deadweight loss falls initially, but eventually it begins to rise.

• As the size of the tax increases, tax revenue and deadweight loss rise initially, but both eventually begin to fall.