Which of the following is the best description of the U.S. tax system?
The federal income tax is regressive but sales, property, and other taxes tend to be progressive.
The U.S. tax system is completely progressive.
correct
*The federal income tax is progressive but sales, property, and other taxes tend to be regressive.
The
Which of the following components of consumer spending is the most cyclical?
Services
Agricultural goods
Nondurable goods
*Durable goods
The U.S. system of transfer payments and taxes represents an attempt to reduce:
*Income inequality
Monopoly power
Government failure
Externalities
The economy of the United States is important because it:
Produces as much output as China, Japan and Western Europe combined
*Produces over 20 percent of total world output
Exceeds the combined production of all other countries in the world
Accounts for over 20 percent of total world population
Net exports measures the:
Total dollar value of U.S. exports
Dollar amount of imports
Quantity of goods produced abroad
*Dollar value of exports minus the dollar value of imports
The largest component of U.S. GDP is:
Government services at the federal, state and local levels combined
Business investment
*Household consumption
Net exports
The decline in employment in the farm sector in the U.S. during the 1900s can be attributed primarily to:
*New technology that made it possible to grow more food with fewer workers
An increase in the importance of the manufacturing sector
Competition from imported agricultural products
A decline in the amount of food consumption per person
If output growth exceeds population growth for a country, then:
*Average living standards will increase.
GDP must have grown at a very rapid rate.
Per capita GDP will decrease.
This country must have overcome the problem of scarcity.
The output of cell phones can be added to the output of refrigerators in order to compute GDP by:
*Multiplying the output of each by price and adding these dollar values
Dividing the output of each by price and adding these dollar values
Adding up the physical number of cell phones and refrigerators produced
Dividing dollar values of output for each b
Which of the following is not included in U.S. GDP?
*Toys produced by a U.S. firm located in China
Beer brewed in Colorado and purchased by a German tourist
A car made by a Japanese auto producer in Kansas
Corn grown in Iowa and exported to Africa
An outward shift of the production possibilities curve indicates that:
The price level has increased
Population has increased
*Economic growth has occurred
More goods are being exported
Which of the following is true concerning the distribution of income in the United States?
Income is distributed almost equally across households
*The richest fifth of U.S. households receives about one-half of all the income
The richest fifth of U.S. households receives nearly twice as much income as the poorest fifth
The tax system has a sign
Government income transfers are not included in the calculation of GDP because:
It is difficult to measure the value of these payments
Most of these payments are paid to foreign immigrants
These payments do not have an impact on the WHAT question
*These payments do not reflect the production of goods and services
Which of the following expenditures is the most important in expanding a country's production possibilities?
Consumer goods.
*Investment goods.
Government services.
Net exports.
Which of the following is not a reason why the United States is able to produce such high levels of GDP?
Abundant factors of production
*Labor-intensive production process
High levels of investment in human capital
High quality of capital