WorksheetsFiscal Review
Total questions: 20
Worksheet time: 10mins
This type of tax structure is seen when a person makes more money, they pay a higher percentage of their income in tax.
Flat
Regressive
Progressive
Sales
This type of inflation is caused by an increase in the amount of consumers who are willing and able to purchase products at higher prices.
Supply side
Demand side
Demand pull
Cost push
How many months does it take to prepare the U.S. budget?
24
18
6
12
How did the Great Depression relate to the school of classical economics?
The end of the Great Depression in the 1940s confirmed many of the theories of classical economics.
The issues of the Great Depression had no connection to classical economics.
Crises like the Great Depression were predicted by Adam Smith.
The Great Depression appeared to disprove the classical theory that demand and supply could return to a healthy equilibrium through market forces alone.
The sales tax in Arizona is an example of which tax structure?
Progressive
Regressive
Flat
What type of unemployment is most dangerous to the economy?
Frictional
Cyclical
Structural
Seasonal
Who initially prepares the budget for the United States?
The Office of the President
State Governors
The Supreme Court
Congress
An example of contractionary fiscal policy would be
increasing production of consumer goods.
cutting taxes.
expanding the government’s role in regulating private industry.
decreasing government spending.
Because of the increase for consumer goods the past 8 months, prices for goods have increased by 10% over that period. What problem is created by this situation?
Cyclical Unemployment
Inflation
No problem is presented
Structural unemployment
Which of these statements is a fundamental part of supply-side economics?
The government can use deficit spending to increase aggregate demand and pull the economy out of recession.
The federal government should have a balanced budget every year to protect economic growth.
The economy will only reach equilibrium and prosperity through the self-regulation of the free market.
The government should reduce taxes to promote economic growth by increasing aggregate supply.
Over the last year or so, prices for apartments and houses have increased dramatically so consumers are unable to afford them. What could the government do to combat this issue?
No policy needed
Contractionary
Expansionary
Due to a decrease in the demand for print media, newspapers have been laying off a number of their employees. Which of the following could the government implement to help solve this problem?
Decrease spending
Increase taxes
No policy change is needed
Increase spending
This type of tax structure is most difficult on the poor, as it works by having people pay a lower percentage of tax as they make more money.
Flat
Regressive
Progressive
Sales
When the economy is working properly, what is the unemployment rate?
0 to 3 percent
8 to 10 percent
10 to 12 percent
4 to 6 percent
What is the purpose of contractionary policy?
To fight inflation
To fight unemployment
To guarantee funds are in banks
To get money into the economy
The cost of homes have gone up 37% in the last year and furniture prices have tripled. What type of policy should the government enact to combat these issues?
Contractionary
Expansionary
No policy needed
Due to unemployment rates currently sitting at 3%, consumers demand for luxury items have greatly increased. Which of the following actions show how the government should respond to the problem created by this situation?
No change needed
Increase taxes
Approve stimulus
Increase Spending
This type of tax structure is shown when a person pays the same percentage of their income in tax, regardless of how much they make.
sales
progressive
flat
regressive
Retailers are reporting lower sales numbers this Halloween season and begin letting workers go due to those low numbers. Which problem would the government be most concerned with?
Cyclical unemployment
Inflation
Structural unemployment
Seasonal unemployment
Following a record setting holiday season, unemployment continues to hover around 2%. What problem would government officials be most concerned about at this point?
Inflation
Structural unemployment
Frictional unemployment
Cyclical unemployment
