WorksheetsMonetary/Fiscal , GDP, TAXES
Total questions: 40
Worksheet time: 20mins
Name
Class
Date
1.
Which of the following would explain why the Federal budget would be in a deficit?
a)
More money is spent on a government program than what was estimated
b)
High levels of unemployment use up tax revenue
c)
The government spends more money than it collects in taxes
d)
The government saves more money than it collected in taxes
2.
Which of the following would explain why the Federal budget would be in a surplus?
a)
More money is spent on a government program than what was estimated
b)
High levels of unemployment use up tax revenue
c)
The government spends more money than it collects in taxes
d)
The government saves more money than it collected in taxes
3.
There is a recession leading to a trough in the Business Cycle. What would Maynard Keynes do?
a)
Stimulate the economy fiscally by lowering taxes
b)
Stimulate the economy fiscally by increasing taxes
c)
Stimulate the economy monetarily by taking the interest rate to Zero
d)
Let the invisible hand take care of it
4.
A restrictive or "tight money" policy would be used by the government in which situation?
a)
High Inflation
b)
Low inflation
c)
Deficit
d)
Surplus
5.
When Interest rates increase what happens to Business and Consumer spending?
a)
It increases
b)
It decreases
c)
Business spending goes up, consumer goes down
d)
Consumer spending goes up, business spending goes down
6.
Why does the government sometimes use expansionary fiscal policies?
a)
To stop the economy from slowing down and contracting
b)
To stop the economy from speeding up and expanding
c)
To prevent inflation
d)
To fight unemployment
7.
The goal of manipulating the business cycle to continue long term growth (or as Shytle says "the sweet spot) include all of the following except:
a)
Increase the standard of living
b)
Increase employment
c)
Boost economic growth of allied nations
d)
Increase the amount of scarce goods
8.
How many Federal Reserve districts are there?
a)
5
b)
8
c)
3
d)
12
9.
Which of the following is not a MONETARY policy?
a)
Selling bonds (government securities)
b)
Changing Interest rates for loans
c)
Decreasing spending on government programs
d)
Buying Bonds (government securities)
10.
Which of the following is the #1 cause of poverty?
a)
disabilities
b)
Unemployment
c)
Size of family
d)
Education
11.
A "good" tax is...
a)
Equitable (fair) and Simple to understand
b)
Complex and Favors the Poor
c)
Favors the Rich and discourages unemployment
d)
Certain and Favorable
12.
GDP measures?
a)
The value of the goods created in that country
b)
The economic worth of the work individuals in that country do only
c)
The unemployment rate
d)
How different countries collaborate to make goods
13.
C, I , G, Xn are the 4 parts that make up______?
a)
GDP
b)
Unemployment
c)
wage gap
d)
poverty
14.
If GPD represents G+ I +C + Xn:
What is the Xn?
What is the Xn?
a)
Government spending
b)
Investment spending
c)
Consumer Spending
d)
Exports minus imports
15.
If GPD represents G+ I +C + Xn:
What is the G?
What is the G?
a)
Government spending
b)
Investment spending
c)
Consumer Spending
d)
Exports minus imports
16.
If GPD represents G+ I +C + Xn:
What is the C?
What is the C?
a)
Government spending
b)
Investment spending
c)
Consumer Spending
d)
Exports minus imports
17.
If GPD represents G+ I +C + Xn:
What is the I?
What is the I?
a)
Government spending
b)
Investment spending
c)
Consumer Spending
d)
Exports minus imports
18.
When the government takes Social Security taxes out of your paycheck, what does it get used for?
a)
Protects against terrorism
b)
Provides security to Government events
c)
So that you can retire in your 40's
d)
Benefits to older citizens and people with disabilities
19.
What is the purpose of a sin tax ?
a)
Discourage people from using those products
b)
Encourage people to use those products
c)
Taxes you pay to the Church
d)
Taxes you pay when you commit a crime
20.
The economy is contracting and real GDP is decreasing, what would the FED do?
a)
Fiscal Increase taxes
b)
Monetary - Sell bonds
c)
Fiscal Decrease taxes
d)
Monetary - Buy bonds
21.
The economy is expanding too fast and real GDP is increasing what would the FED do?
a)
Fiscal Increase taxes
b)
Monetary - Sell bonds
c)
Fiscal Decrease taxes
d)
Monetary - Buy bonds
22.
The economy is contracting and real GDP is decreasing, what would the the Government do?
a)
Fiscal Increase taxes
b)
Monetary - Sell bonds
c)
Fiscal Decrease taxes
d)
Monetary - Buy bonds
23.
The economy is expanding too fast and real GDP is increasing, what would the Gov. do?
a)
Fiscal Increase taxes
b)
Monetary - Sell bonds
c)
Fiscal Decrease taxes
d)
Monetary - Buy bonds
24.
Banks create money by...
a)
increasing the interest rate loans
b)
decreasing the interest rate on loans
c)
printing money
d)
Lending money and making loans
25.
OMO stands for...
a)
Operation Money Occupation
b)
Open Market Operations
c)
Operations Market Opened
d)
Oh Em O
26.
Which of the following counts towards GDP?
a)
A Pillow made in the USA shipped to India
b)
A iphone made in china shipped to the USA
c)
An American Plumber flown to Canada to fix a leak
d)
Dog food made in Mexico, sold in Mexico, but the Dog eats in the United States
27.
Gross pay =
a)
Total pay before taxes are taken out
b)
Net Pay after taxes are taken out
c)
When your pay is really low
d)
Pay after income taxes
28.
When the Government spends more money than it has taxed, that is called...?
a)
Budgeting
b)
Deficit
c)
Surplus
d)
National Surplus
29.
When the government spends less money than it has taxed, that is called?
a)
Deficit
b)
Surplus
c)
National Budgeting
d)
Reducing Govern
30.
What is expansionary policy?
a)
Policy the government uses during a recession to jump start the economy
b)
Policy the government uses to slow down the economy
31.
What is Contractionary policy?
a)
Policy the government uses during a recession to jump start the economy
b)
Policy the government uses to slow down the economy
32.
What is "incidence of tax?"
a)
The group that bears the burden of tax
b)
a tax that increases as income decreases
c)
a tax that decreases as income increases
d)
income , property and services that are subject to tax
33.
What is the #1 cause of poverty?
a)
Racism
b)
Lack of Education
c)
Wage gap
d)
Disability
34.
What is the national Debt?
a)
The sum of all the years the government overspent
b)
The sum of all the surplus money the government has used
c)
The take home pay of the government
d)
The gross taxes of all americans
35.
What is a required reserve ratio for a bank?
a)
The amount the bank must keep and not loan out
b)
The amount of $ owed to the bank
c)
The $ the bank has to pay back to the FED
d)
The ratio of Lenders to Buyers
36.
How do banks CREATE money?
a)
By collecting interest rate fees on loans
b)
By selling bonds
c)
By buying bonds
d)
By collecting government subsidies
37.
What is a progressive tax?
a)
The amount of taxes owed is based on how much money you make
b)
The amount of taxes owed is based on how much money your family makes
c)
Sales tax
d)
Social Security tax
38.
What is a regressive tax?
a)
A tax in which the amount of taxes decrease as you make more money
b)
Income tax
39.
What is a tax base?
a)
The goods being taxed
b)
The people being taxed
c)
The GDPs relation to tax
d)
Taxes on Sales
40.
Who bears the burden of taxes?
a)
The consumer
b)
The seller
c)
Businesses
d)
Everyone
100 %
