Economics Topics 8 & 9

Question 1

School of economics that believes government spending / tax cuts help economy by raising demand

Accepted Answer

Demand-side

Question 2

The Federal Reserve influences the money supply by using ...

Accepted Answer

Monetary Policy

Question 3

If you work a 40 hour week at $10/hr, what are your total yearly pay deductions at 35%?

Accepted Answer

$7,280

Question 4

A group of three respected economists that advise the president on economic policy

Accepted Answer

Council of Economic Advisors

Question 5

A tax on the money people earn

Accepted Answer

income

Question 6

What is the yearly services tax if $2 is deducted out of each biweekly pay check in a year?

Accepted Answer

$52

Question 7

A tax for which the percentage of income paid in taxes decreases as income increases

Accepted Answer

regressive

Question 8

A tax for which the percentage of income paid in taxes remains the same for all income levels

Accepted Answer

proportional

Question 9

A tax on the dollar value of a good or service being sold

Accepted Answer

sales

Question 10

Which is a fiscal tool used by the federal government to influence the money supply

Accepted Answer

Raising or lowering taxes

Question 11

A tax on imported goods intended to protect a country's producers from foreign competitors

Accepted Answer

tariff

Question 12

If you work a 40 hour week at $10/hr, what is your gross yearly pay?

Accepted Answer

$20,800

Question 13

Which is NOT a monetary tool used by the Federal Reserve to influence the money supply

Accepted Answer

Changing their underwear

Question 14

A tax on the value of money and property of a person who has died

Accepted Answer

estate

Question 15

Government office that manages the federal budget

Accepted Answer

Office of Management and Budget

Question 16

The Federal Reserve Act divided the United States into ____ Federal Reserve districts

Accepted Answer

12

Question 17

The ____ (FOMC) makes key decisions about interest rates and the money supply

Accepted Answer

Federal Open Market Committee

Question 18

Government agency that provides economic data to Congress

Accepted Answer

Congressional Budget Office

Question 19

If your gross yearly pay is $20,800, what is your net yearly pay if your deductions are 35%?

Accepted Answer

$13,520

Question 20

The ____ rate is the rate the Federal Reserve charges for loans to commercial banks

Accepted Answer

discount

Question 21

The income received by a government from taxes (and nontax sources) is called ...

Accepted Answer

revenue

Question 22

Social welfare programs that people get if they meet certain eligibility requirements

Accepted Answer

entitlements

Question 23

The Federal Reserve System is overseen by the Board of ________ in Washington, D.C.

Accepted Answer

Governors

Question 24

If your gross yearly pay is $20,800, what is your state tax if you live in PA (3.07%)?

Accepted Answer

$638.56

Question 25

The money_____ formula calculates the amount of new money created with each demand deposit

Accepted Answer

multiplier

Question 26

Monetary policies that reduce the money supply

Accepted Answer

Tight Money Policy

Question 27

The required reserve_____ is the fraction of a deposit that a bank must keep on reserve

Accepted Answer

ratio

Question 28

If your gross yearly pay is $20,800, what is your local tax of 1.0%?

Accepted Answer

$208

Question 29

Monetary policies that increase the money supply

Accepted Answer

Easy Money Policy

Question 30

A tax for which the percentage of income paid in taxes increases as income increases

Accepted Answer

progressive

Question 31

The idea that free markets can regulate themselves

Accepted Answer

Classical Economics

Question 32

All the money the federal government owes to bond holders

Accepted Answer

National Debt

Question 33

If your gross yearly pay is $20,800, what is your federal tax in the 15% tax bracket?

Accepted Answer

$3,120

Question 34

Economics that encourages government action to increase or decrease demand and output

Accepted Answer

Keynesian

Question 35

If gross yearly pay is $20,800, what is your net biweekly pay check with deductions at 35%?

Accepted Answer

$520

Question 36

If your gross yearly pay is $20,800, what is your social security withholding of 6.2%?

Accepted Answer

$1,289.60

Question 37

A plan for saving and spending

Accepted Answer

Budget

Question 38

A tax on the value of a company's profits

Accepted Answer

corporate

Question 39

School of economics that believes tax cuts can help an economy by raising supply

Accepted Answer

Supply-side

Question 40

If your gross yearly pay is $20,800, what is your Medicare withholding of 1.45%?

Accepted Answer

$301.60

Question 41

The federal government (President and Congress) influence the money supply by using ...

Accepted Answer

Fiscal Policy

Question 42

The federal ______ rate is the interest rate banks charge each other for loans

Accepted Answer

funds

Question 43

The loss of funds for private investment due to government borrowing

Accepted Answer

Crowding-out Effect

Economics Topics 8 & 9

Questions 43

Economics Topics 8 & 9

Questions 43