5 Written questions
5 Matching questions
- Positive Statement
- Wealth of Nations
- Excess Reserves
- Federal Funds Rate
- Vertical Equity
- a any reserves held beyond the required amount. No interest earned on these reserves
- b This is the 18th century book written by Scottish economist Adam Smith in which he spells out the first modern account of free market economies.
- c the idea that taxpayers with a greater ability to pay taxes should pay larger amounts. The problem is "how much more?"
- d A statement that can be proved or disproved by reference to facts
- e The interest a bank pays another bank for an overnight loan
5 Multiple choice questions
- a shortfall of tax revenue from government spending
- A reduction in the rate on inflation
- The ability to produce something at a lower opportunity cost than other producers face
- A sustained rise in the price level caused by a leftward shift of the aggregate supply curve
- increase in the value of an asset
5 True/False questions
Annually Balanced Budget → Shows the assets, liabilities and net worth of an organization. Also know as a "t account"
Horizontal Equity → the idea that taxpayers with a greater ability to pay taxes should pay larger amounts. The problem is "how much more?"
Normative Statement → a statement that reflects an opinion, which cannot be proved or disproved by reference to the facts
Quality Bias → increase in the value of an asset
Ability to Pay Principle → Those with greater ability to pay should pay more tax.