When isolating the substitution effect of a change in an individual’s budget constraint, _____ is held constant. a. utility b. budget c. income d. consumption ANSWER c
Date: September 9th, 2020
If an individual’s budget constraint shifts, the individual’s changes in consumption can be broken down into _____ and _____ effects. a. budget; consumption b. income; substitution c. utility; indifference d. wealth; savings ANSWER b
Date: September 9th, 2020
For goods on which a relatively small portion of income is expended, _____. a. income effects will be small relative to substitution effects b. income effects will be large relative to substitution effects c. income effects will be about the same as substitution effects d. there will be no income effects. ANSWER a
Date: September 9th, 2020
In a representative democracy, some responsibility for government extends to all citizens. a. True b. False Indicate whether the statement is true or false ANSWER TRUE
Date: September 9th, 2020
Markets do not always allocate resources efficiently, however, government always does. a. True b. False ANSWER b
Date: September 9th, 2020
Social insurance revenues _____ come from _____. a. primarily; Social Security payroll taxes b. primarily, Medicare taxes c. primarily; Social Security payroll taxes and Medicare taxes d. do not; Social Security payroll taxes ANSWER a
Date: September 9th, 2020
As a percentage of total federal revenue, excise taxes have _____. a. risen slightly since 1960 b. remained constant since 1960 c. risen considerably since 1960 d. fallen since 1960 ANSWER d
Date: September 9th, 2020
The bulk of federal budget receipts come from ______. a. individual income taxes b. social insurance revenues c. corporation income taxes d. excise taxes ANSWER a
Date: September 9th, 2020
Federal government expenditures in the United States comprise about _____ of total government expenditures. a. 90 percent b. 75 percent c. 60 percent d. 45 percent ANSWER c
Date: September 9th, 2020
In 1902, total government expenditures at all levels of government were around _____. a. 10 percent of GDP b. 20 percent of GDP c. 30 percent of GDP d. 40 percent of GDP ANSWER a
Date: September 9th, 2020
