5 Written questions
5 Matching questions
- Corporate Income Taxes
- Consumption Goods
- New Goods Bias
- Autonomous Consumption
- Fiscal Policy
- a The use of government purchases, transfer payments, taxes and borrowing to influence economy-wide activity
- b Brand New items and services are not calculated into CPI
- c goods purchase by households for immediate satisfaction or to use up (ex. food, movies)
- d The part of consumption that is independent of the level of disposable income.
- e a tax corporation pays on its profits. Third largest contributer of government revenue.
5 Multiple choice questions
- Unemployment 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
- Adam Smith's term for the natural self-regulation of a market economy driven by self-interest and efficiency
- an economic system based on private ownership of capital
- A decline in the economy's total output lasting at least two consecutive quarters or 6 months (An economic Contraction)
- The "normal" unemployment rate due to frictional and structural conditions in labor markets. It is the unemployment rate that occurs when the economy is operating at a sustainable rate of output.
5 True/False questions
Average Tax Rate → total tax paid divided by total (taxable) income, as a percentage
Open Market Operations → income tax deductions from spending money on tax-deductible expenses
Budget Deficit → a shortfall of tax revenue from government spending
Mutual Funds → Fiat Money is accepted because the government has required it to be accepted in settlement of debts
Discount Rate → The use of government purchases, transfer payments, taxes and borrowing to influence economy-wide activity