Question : 11) Induced taxes defined as taxes A) we forced to pay : 1238232

 

11) Induced taxes are defined as taxes

A) we are forced to pay for services from the government.

B) that vary with real GDP.

C) that are avoided with the use of legal tax shelters.

D) enacted by Congress that explicitly state the amount to be paid.

E) that rise in recessions and fall in expansions.

12) Needs-tested spending is defined as

A) spending by Congress on its own perks of office.

B) taxes paid by those qualified by their income.

C) spending on programs for people qualified to receive benefits.

D) spending by the President on the White House.

E) spending that increases in expansions and decreases in recessions.

13) Needs-tested spending is best described as

A) spending on programs that entitle qualified persons and businesses to receive benefits.

B) spending on programs that have been tested in some manner.

C) spending on programs that have proven over time to be sound investments.

D) spending on programs that are considered necessities (needed) according to surveys of the public.

E) not spending at all, but a reference to the reliability of budget.

14) Needs-tested spending

A) increases as real GDP increases.

B) increases as unemployment increases.

C) decreases as unemployment increases.

D) decreases in recession.

E) makes recessions more severe.

15) During a recession, unemployment benefit payments increase without the need for any government action. This increase is an example of

A) discretionary monetary policy.

B) automatic monetary policy.

C) automatic fiscal policy.

D) discretionary fiscal policy.

E) government expenditure but it is not an example of either discretionary or automatic policy.

16) Needs-tested spending

A) increases in recessions and decreases in expansions.

B) decreases in recessions and increases in expansions.

C) does not change with the level of economic activity.

D) is always increasing regardless of whether we are in an expansion or a recession.

E) cannot be changed unless the government changes the spending laws.

17) Needs-tested spending

A) is directing government spending and taxes to states that need the most help.

B) is giving tax cuts to wealthy people so they will increase their spending.

C) includes transfer payments such as food stamps and unemployment benefits.

D) includes homeland defense spending.

E) cannot be changed without changes in the laws.

18) Automatic stabilizers include

A) changes in induced taxes and changes in needs-tested spending.

B) increases or decreases of tax rates and changes in needs-tested spending.

C) changes in induced taxes and changes in discretionary spending.

D) changes in discretionary spending and changes in needs-tested spending.

E) changes in the federal funds interest rate brought about by Fed policy.

19) In a recession, needs-tested spending ________ and induced taxes ________.

A) increases; increase

B) increases; decrease

C) decreases; increase

D) decreases; decrease

E) increase; do not change

20) An economic expansion leads to ________ needs-tested spending and ________ induced taxes.

A) higher; lower

B) lower; higher

C) higher; higher

D) lower; lower

E) lower; no change in

 

 

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