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of 116 available terms

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5 Written Questions

5 Matching Questions

  1. Average Tax Rate
  2. Cyclical Unemployment
  3. Limited Liability
  4. Required Reserve Ratio
  5. Mutual Funds
  1. a the responsibility of a business's owners for losses only up to the amount they invest
  2. b total tax paid divided by total (taxable) income, as a percentage
  3. c financial organization that pools people's money and invests it
  4. d Unemployment that fluctuates with the business cycle, increasing during contractions and decreasing during expansions
  5. e The minimum percentage of deposits that a bank must keep as reserves

5 Multiple Choice Questions

  1. A legal entity whose liability is limited to the value of their stock
  2. To produce each additional increment of a good, a successively larger increment of an alternative good must be sacrificed if the economy's resources are already being used efficiently
  3. book that introduced Keynesian economics
  4. A decrease in government purchases, increase in net taxes, or some combination of the two aimed at reducing aggregate demand enough to return the economy to potential output without worsening inflation
  5. an amount set by the IRS on which no taxes are paid.

5 True/False Questions

  1. Opportunity CostItems that are used as money but which also have value in other uses

          

  2. Fiat MoneyItems designated by government decree to serve as money, although essentially worthless

          

  3. Discouraged WorkerWhen taxes increase, welfare and unemployment compensation decrease in response to an economic expansion. This lessens the increase in disposable income

          

  4. Full EmploymentUnemployment because the skills needed for a job do not match those of the unemployed, or the unemployed do not live where the jobs are located

          

  5. Budget Surplusan excess of tax revenue over government spending

          

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