ECO203 Assignments Week 3 – Quiz

Question 1

1 / 1 pts

If you remove the Social Security Trust Fund from the federal budget,

the deficit is smaller.

Correct!

the deficit is larger.

for some recent years the deficit is smaller, and for others it is larger.

the deficit will not change.

the effect on the deficit cannot be determined.

The answer can be found in Section 10.3 SHOULD THE BUDGET BE BALANCED? in Macroeconomics

Question 2

1 / 1 pts

The cumulative total of past federal budget deficits minus past surpluses

Correct!

is known as the national debt.

is about one trillion dollars.

adds up to zero.

is not important because it can never be a burden on future generations.

is no longer statistically calculated.

The answer can be found in Section 10.1 DEBT AND DEFICITS in Macroeconomics

Question 3

1 / 1 pts

The Ford tax rebate was an example of

Correct!

expansionary fiscal policy.

an automatic stabilizer.

a supply side policy.

a contractionary fiscal policy.

The answer can be found in Section 9.4 DISCRETIONARY FISCAL POLICY in Macroeconomics

Question 4

1 / 1 pts

In a macroeconomic equilibrium,

planned saving and planned investment are equal, and the size of the income stream is constant.

the size of the income flow is constant.

Correct!

planned saving is equal to either planned investment or actual investment.

planned saving and planned investment are equal.

The answer can be found in Section 7.1 THE CLASSICAL TRADITION AND SAY’S LAW in Macroeconomics

Question 5

1 / 1 pts

Which of the following is the largest source of funds for the federal government?

property taxes

borrowing

excise taxes

Correct!

income taxes

tariffs

The answer can be found in Section 9.3 THE TOOLS OF FISCAL POLICY in Macroeconomics

Question 6

1 / 1 pts

A laissez-faire attitude toward most markets is most closely associated with

Keynesians.

monetarists.

Correct!

classical economists.

supply siders.

Reaganomics.

The answer can be found in Section 7.3 THE QUANTITY THEORY OF MONEY in Macroeconomics

Question 7

1 / 1 pts

All but which one of the following are transfer payments?

Correct!

the President’s salary

welfare

Social Security payments

farm subsidies

food stamps

The answer can be found in Section 9.3 THE TOOLS OF FISCAL POLICY in Macroeconomics

Question 8

1 / 1 pts

The White House sees a recession on the horizon, but Congress is preoccupied with other issues and is slow to act. This delay is an example of

Correct!

an implementation lag.

an impact lag.

a communication gap.

a recognition lag.

a time lag.

The answer can be found in Section 9.5 LIMITATIONS OF FISCAL POLICY in Macroeconomics

Question 9

1 / 1 pts

Classical economists believed that the level of real output is determined by the

Correct!

labor market equilibrium.

price level.

interest rate.

government.

The answer can be found in Section 7.1 THE CLASSICAL TRADITION AND SAY’S LAW in Macroeconomics

Question 10

1 / 1 pts

The length of time it takes to realize that there is an economic problem is called

Correct!

the recognition lag.

the implementation lag.

the impact lag.

the policy lag.

the legislative lag.

The answer can be found in Section 9.5 LIMITATIONS OF FISCAL POLICY in Macroeconomics

Quiz Score: 10 out of 10

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