Question : 1) Government’s transfer payments to individuals affect desired aggregate expenditure : 1384379

1) Government’s transfer payments to individuals affect desired aggregate expenditure

A) directly.

B) through the consumption function.

C) through the investment function.

D) through net exports.

E) through the government’s budget deficit.

2) Why are government expenditures such as Old Age Security payments, employment insurance payments, or welfare benefits paid to individuals not considered part of G, the government component of aggregate expenditure?

A) These are transfer payments and place no direct demand on Canada’s total output.

B) These payments are directly included as part of C, consumption, because they become consumption expenditure for the recipient.

C) Since the revenues from which these payments are made did not originate from tax collection, they are not considered part of G.

D) Since these expenditures are transfers from recipients to taxpayers, they are not included in G.

E) These payments are included in G only when the payments are made directly by the federal government.

3) The G and T components in the national-income accounts measure purchases and net taxes collected by

A) all levels of government.

B) only provincial governments and the federal government.

C) only the federal government.

D) only provincial governments.

E) only local governments.

4) When economists use the term “budget surplus” they are referring to

A) net tax revenues minus government purchases.

B) national income minus transfer payments.

C) national income minus consumption.

D) disposable income minus consumption.

E) net tax revenues minus transfer payments.

5) Consider the government’s budget balance. Suppose G = 300 and the government’s net tax revenue is equal to 0.14Y. When Y = 2000, the government is running a budget

A) deficit of 20.

B) surplus of 20.

C) balance.

D) deficit of -20.

E) surplus of 40.

6) Consider the government’s budget balance. Suppose G = 300 and the government’s net tax revenue is equal to 0.12Y. The government budget is balanced when Y equals

A) 350.

B) 1000.

C) 2000.

D) 2500.

E) 3600.

7) Consider the government’s budget balance. Suppose G = 400 and the government’s net tax revenue is 20% of national income (Y). Government saving is negative for all values of Y

A) above 10 000.

B) above 8000.

C) above 2000.

D) below 8000.

E) below 2000.

8) Consider the government’s budget balance. Suppose G = 600 and the government’s net tax revenue is 10% of Y. The government budget is balanced when Y equals

A) 660.

B) 1320.

C) 3000.

D) 4500.

E) 6000.

9) Consider the government’s budget balance. Suppose G = 300 and the government’s net tax revenue is 0.3Y. The government budget is in surplus only when Y is

A) less than 350.

B) less than 1000.

C) greater than 1000.

D) greater than 2500.

E) greater than 3000.

10) Transfer payments made by the government affect its net tax revenues

A) directly.

B) indirectly through government purchases.

C) indirectly through net exports.

D) indirectly through the investment function.

E) indirectly through the consumption function.