ECO 302 Week 8 Quiz Strayer Question  1 5 out of 5 points    If a household’s  transfer payments less taxes is positive, then the government: Answer   Question  2 5 out of 5 points    In the market clearing model without government borrowing, the net effect of government on households is an increase in funds of: Answer   Question  3 0 out of 5 points    U.S. data show that the ratio of Social Security, Medicare and state and local Medicaid payments to GDP is Answer   Question  4 0 out of 5 points    One difference between a permanent and temporary increase in government purchases is that with a temporary increase, Answer   Question  5 0 out of 5 points      The fastest growing part of the federal government budget since WWII is: Answer   Question  6 5 out of 5 points    One empirical prediction from the model which includes government purchases is that Answer   Question  7 0 out of 5 points    Suppose real government purchases equal $800 billion and real government transfers equal $100 billion.  If the nominal quantity of money is constant, then real tax revenues must Answer   Question  8 5 out of 5 points    At the federal level, the largest expansions in transfer payments have been from increases in Answer   Question  9 5 out of 5 points    If a household’s real taxes increase by one unit, then Answer   Question  10 5 out of 5 points    With a temporary change in government purchases the model predicts investment is: Answer   Question  11 5 out of 5 points    Real disposable income for a household equals Answer   Question  12 0 out of 5 points    Adding government to the Barro model affects the household budget constraint by Answer   Question  13 5 out of 5 points    A decrease in the marginal tax rate on labor income will shift the Answer   Question  14 0 out of 5 points    If government purchases are constant, then an increase in the marginal income tax rate,w, leads to: Answer   Question  15 0 out of 5 points    If there is an decrease in government purchases along with a decrease in the marginal tax rate on labor income, then: Answer   Question  16 5 out of 5 points    Since World War II,  state and local government revenues have been a Answer   Question  17 5 out of 5 points    The average income tax rate is: Answer   Question  18 0 out of 5 points    The single largest source of federal government revenue from those listed below is Answer   Question  19 5 out of 5 points    The U.S. federal income-tax structure is designed so that Answer   Question  20 5 out of 5 points    Data on U.S individual income taxes shows that the income tax Answer   Question  21 0 out of 5 points    If the real marginal tax rate, w, increases in the market clearing model then: Answer   Question  22 0 out of 5 points    The U.S. Social Security contribution or tax on individuals has a marginal tax rate which equals the average tax rate.  This makes it Answer   Question  23 5 out of 5 points    In the long run an increase in the marginal tax rate on asset income, r, in the market clearing model: Answer   Question  24 0 out of 5 points    An increase in government purchases financed by an increase in the marginal tax rate on labor income, increases the quantity of labor supplied, if the: Answer

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