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WorksheetsSVTC Unit 4 Assignment
Total questions: 40
Worksheet time: 2hrs 0mins
What are the four main parts of the circular flow diagram?
Product Market, Stock Market, Factor Market, Fish Market
Product Market, House Market, Factor Market, Good Market
Factor Market, Product Market, Households, Businesses
Factor Market, Households, Stock Market, Super Market
The Business Cycle measures ___ over time.
wealth
inflation
economic growth
The term "The Fed" refers to...
Federal Bureau of Investigation
Federal Government
Federal Reserve System
Federal Income Tax
What is the Federal Reserve?
It is made up of 12 district banks and 25 branch banks.
It is managed by a 12-member board of directors.
It is made up of district banks that operate independently from one another.
A period of macroeconomic expansion or growth is followed by a period of contraction or decline.
Business Cycle
Circular Flow
Equilibrium
GDP
The buying and selling of government securities is done in order to alter the supply of money.
Open Market Operations
Expansion
Discount Rate
Trough
Who is in charge of Monetary Policy?
The Government
The Federal Reserve System
The states
The Department of the Treasury
An expansionary policy means that the Fed is attempting to:
Increase the size of the nation's money supply
Decrease the size of the nation's money supply
What does a contractionary policy mean in terms of the Fed's actions?
The Fed is attempting to increase the size of the nation's money supply.
The Fed is attempting to decrease the size of the nation's money supply.
This stage of the business cycle can also be called a contraction.
Expansion
Trough
Peak
Recession
This type of budget requires that government spending equals government revenues.
capital
balanced
personal
none of the above
What is the term for the amount of cash that a bank keeps on deposit instead of lending it out?
Discount rate
Reserve requirement
Open market operations
Margin requirements
This action by the Federal Reserve involves buying and selling government securities.
Discount rate
Reserve requirement
Open market operations
Margin requirements
Which Federal Reserve tool involves lowering the rate your bank pays when it borrows money from the Federal Reserve?
Interest rate
Discount rate
Federal funds rate
Prime rate
This type of tax is placed on imported goods to protect the domestic industry.
excise
proportional
tariff
export
This type of fiscal policy, promoted by Republicans in the 80s, focuses on giving tax breaks to businesses to promote economic growth.
supply side
demand side
Keynesian
monetary
What is it called when the government spends more money than it takes in?
Budget deficit
Revenue
Discount rate
Federal funds rate
The buying and selling of government securities to alter the supply of money.
Open market operations
Monetary policy
Expansionary policies
Contractionary policies
Fiscal policies intended to decrease output and reduce economic growth.
Monetary policy
Expansionary policies
Open market operations
Contractionary policies
The actions the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy.
Fiscal policy
Supply-side economics
Monetary policy
Keynesian economics
Fiscal policies intended to increase output and encourage economic growth are:
Monetary policy
Expansionary policies
Open market operations
Contractionary policies
What is the form of economics that focuses on tax cuts to help the economy by raising supply?
Fiscal policy
Keynesian economics
Monetary policy
Supply-side economics
Other countries wanted gold for their U.S. dollars and the U.S. wanted to print more money. This led to the U.S.
Mining more gold
Getting gold from other countries
Leaving the gold standard
Which of these taxes is the leading source of revenue for the federal government?
Corporate income taxes
Individual income taxes
Inheritance taxes
Payroll taxes
Which of these is a progressive tax?
Excise tax
Luxury tax
Property tax
Social Security tax
As your income increases, the percentage of taxes you pay also increases. What type of tax is this?
Progressive tax
Proportional tax
Regressive tax
None of the above
You pay the same percentage in taxes regardless of your income level.
Progressive tax
Proportional tax
Regressive tax
None of the above
As your income increases, the percentage of income spent on taxes decreases.
Progressive tax
Proportional tax
Regressive tax
None of the above
The flat tax is an example of what type of tax?
Progressive tax
Proportional tax
Regressive tax
None of the above
A sales tax is an example of which type of tax?
Progressive tax
Proportional tax
Regressive tax
None of the above
Which type of tax disproportionately affects low-income earners?
Progressive tax
Proportional tax
Regressive tax
None of the above
Which type of tax is based on the ability to pay and hurts high income earners?
Progressive tax
Proportional tax
Regressive tax
None of the above
Which of the following is an accurate statement about achieving a balanced budget?
By the end of the 20th century, the federal government had paid off most of its debts.
Classical economists believe that a balanced budget is not in the best interest of the economy.
In 1995, Congress passed a constitutional amendment requiring a balanced budget.
Most states require a balanced budget for state spending.
Does the government have the power to acquire your property?
True
False
Can the government take your property without just compensation?
True
False
The power that the government has to acquire your property is called:
Economic Freedom
Political Freedom
Eminent Domain
Tyranny
When Congress lowers taxes and increases government spending, this results in a budget:
deficit
surplus
ceiling
floor
When Congress raises taxes and decreases government spending, this results in a budget:
deficit
surplus
ceiling
floor
What causes crowding out?
High interest rates
A low debt ceiling
Expectations of excessive inflation
Advancements in technology
What does Crowding Out decrease?
Consumption and government spending
Gross investments and net exports
Capital flight and beneficial terms of trade
The money supply and reserve requirements
