Unit 4 Econ

How do economists think private ownership most affects property maintenance?

• It is harmful because owners save money by letting property get run down.
• It is helpful because owners have to pay taxes on the property.
• It is helpful because owners have an incentive to care for the property.
• It is harmful because non-owners may throw trash on the property.

Establishment of which regulatory agency is associated with a 60 percent drop in workplace fatalities since 1971?

• National Highway Traffic Safety Administration
• Occupational Safety and Health Administration
• Environmental Protection Agency
• Consumer Product Safety Commission

Which historical period brought the greatest increase in government involvement in the economy?

• Reconstruction (after Civil War)
• Great Depression (1930s)
• Progressive Era (early 1900s)
• Gilded Age (late 1800s)

Food stamps, the Earned Income Tax Credit, and unemployment insurance are examples of

• income redistribution
• natural monopolies
• regulatory capture
• negative externalities

Which of these sources of government revenue best illustrates the benefits-received approach to tax equity?

• A driver deposits coins in a parking meter.
• A percentage of a large inheritance is paid to the government.
• Funds for Medicare are withheld from a paycheck.
• A corporation pays taxes on its income.

Most sales taxes are regressive because

• wealthier people pay less tax on a purchase than poorer people would pay on the same item.
• most people cannot afford to buy such luxury goods as yachts, furs, and diamonds.
• poorer taxpayers spend a larger proportion of their income on taxable goods and services than do wealthier taxpayers.
• taxable purchases are capped at $50,000 a year.

Which of these taxes is the leading source of revenue for the federal government?

• corporate income taxes
• payroll
• individual income taxes
• inheritance taxes

The Internal Revenue Service routinely collects taxes from employees through a system of

• assessments
• withholding
• entitlement
• audits

Which of these is a progressive tax?

• property tax
• social security tax
• excise tax
• luxury tax

When federal expenditures exceed federal tax revenues, how does the government fund the deficit?

• by printing additional paper money
• by borrowing money
• by taking a loan from the Federal Reserve Bank
• by asking not-for-profit corporations for help