Econ Test 3

After 1970, the share of federal spending allocated to national defense:

Which of the following countries had the highest level of government expenditures as a share of GDP?

Total government spending sums to approximately

Measured as a share of the economy, government expenditures:

The income security program category for federal government outlays includes spending for

How does total taxes as a percentage of GDP in the US compare to those of western european countries, such as the UK, Germany, and Sweden?

When the tax structure of a nation is progressive, as income increase, the tax rate

"It would be an undue hardship to require people whose income is below 15,000 per year to pay income taxes." this statement reflects which of the following principles for a tax?

"He who pays a tax should receive the benefit from the expenditure financed by the tax." this statement reflects which of the following principles for a tax?

Which of the following answers best reflects the ability-to-pay philosophy of taxation?

Which of the following is an example of a progressive tax?

A tax is regressive if it collects a:

Which of the following can be classified as a regressive tax?

A tax is proportional if, as a persons income rises, the:

In exhibit 12-2, we can tell that the tax shown here is:

Suppose a person with an income of 20,000 pays a tax of 2,000. It the tax is progressive, then how large of a tax will a person with an income of 40,000 pay?

Which of the following US taxes is the most consistent with the ability-to-pay principle?

People who often create benefits for the minority and impose the cost on the majority are called:

The choice of a voter to remain uninformed because the marginal cost of obtaining information is greater than the marginal benefit from obtaining knowledge is called:

Who is recognized as the founder of public choice theory?

According to the shortsightedness effect, politicians tend to favor projects with:

If congress fails to pass a budget before the fiscal year starts, then federal agencies may continue to operate only if congress has passed a:

If the fiscal year begins without a budget and congress fails to pass continuing resolution, then:

Between 1998 and 2001, the federal budget was

Which of the following is true?

When the US federal government runs a budget deficit, it borrows money by selling:

Indebtedness of the federal government in the form of outstanding interest-earing government security

If the federal government has a budget surplus, then the national debt is

Which of the following is true about the current US national debt?

Currently, the national debt is approximately

When measured as a percentage of GDP, the US national debt reached its highest levels as a result of

Which of the following countries has the largest national debt as a percentage of GDP?

In recent years, net interest on the national debt paid by the federal government as a percentage of GDP is equal to approximately

External debt is that portion of the national debt

Which of the following owns the largest proportion of the national debt?

Currently, how much of the US national debt is owned to foreigners?

In terms of productions possibilities curve, the benefits of trade between two nations are that each nation moves to a higher

Opening trade between two nations would

In exhibit 18-1, the production possibilities curve of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of wheat is equal to

In exhibit 18-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of corn is equal to

In exhibit 18-1, the production possibilities curve of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of corn is equal to

In exhibit 18-1, the production possibilities curve of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of wheat is equal to

Comparative advantage indicates that