Podcast
Questions and Answers
Which type of tax is levied on income, wealth, and corporate profits?
Which type of tax is levied on income, wealth, and corporate profits?
- Direct taxes (correct)
- Inheritance tax
- Sales tax
- Indirect taxes
Which of the following is NOT an attribute of a desirable tax policy?
Which of the following is NOT an attribute of a desirable tax policy?
- Fairness (correct)
- Efficiency
- Revenue sufficiency
- Simplicity
Which fiscal policy tool can be adjusted almost immediately after they are announced and can influence spending behavior instantly?
Which fiscal policy tool can be adjusted almost immediately after they are announced and can influence spending behavior instantly?
- Direct taxes
- Capital spending plans
- Indirect taxes (correct)
- Social policies
What is the major philosophical issue among economists regarding tax policy?
What is the major philosophical issue among economists regarding tax policy?
Which of the following is NOT an advantage of indirect taxes?
Which of the following is NOT an advantage of indirect taxes?
Why are capital spending plans more time-consuming to implement compared to other fiscal policy tools?
Why are capital spending plans more time-consuming to implement compared to other fiscal policy tools?
What is one valid criticism of an active fiscal policy?
What is one valid criticism of an active fiscal policy?
Which of the following is NOT considered as government spending on goods and services?
Which of the following is NOT considered as government spending on goods and services?
What is the purpose of transfer payments?
What is the purpose of transfer payments?
Which type of government spending has a big impact on a country's skill level and overall labor productivity?
Which type of government spending has a big impact on a country's skill level and overall labor productivity?
What does capital expenditure include?
What does capital expenditure include?
Why can't transfer payments be included in the definition of GDP?
Why can't transfer payments be included in the definition of GDP?
What are transfer payments made through the social security system?
What are transfer payments made through the social security system?
What are the justifications for government spending?
What are the justifications for government spending?
Which of the following is the correct equation for net taxes (NT) in terms of national income (Y) and the net tax rate (t)?
Which of the following is the correct equation for net taxes (NT) in terms of national income (Y) and the net tax rate (t)?
What is the marginal propensity to consume (MPC) if the marginal propensity to save (MPS) is 0.2?
What is the marginal propensity to consume (MPC) if the marginal propensity to save (MPS) is 0.2?
What is the multiplier if the MPC is 0.9?
What is the multiplier if the MPC is 0.9?
Which fiscal tool has the biggest impact on aggregate spending and output?
Which fiscal tool has the biggest impact on aggregate spending and output?
What is the formula for calculating disposable income (YD) in terms of national income (Y) and net taxes (NT)?
What is the formula for calculating disposable income (YD) in terms of national income (Y) and net taxes (NT)?
What is the formula for calculating the net impact of the government sector on aggregate demand?
What is the formula for calculating the net impact of the government sector on aggregate demand?
What is the formula for calculating total tax revenue from net taxes (tY)?
What is the formula for calculating total tax revenue from net taxes (tY)?
According to the text, if the government increases spending by an amount G, what happens to disposable income?
According to the text, if the government increases spending by an amount G, what happens to disposable income?
What is the term used to describe the rise in aggregate demand and output due to an increase in government spending?
What is the term used to describe the rise in aggregate demand and output due to an increase in government spending?
What is the formula for calculating the fiscal multiplier?
What is the formula for calculating the fiscal multiplier?
If the tax rate is 0.2 and the marginal propensity to consume is 0.9, what is the fiscal multiplier?
If the tax rate is 0.2 and the marginal propensity to consume is 0.9, what is the fiscal multiplier?
What is the balanced budget multiplier?
What is the balanced budget multiplier?
In a balanced budget, what happens to aggregate output?
In a balanced budget, what happens to aggregate output?
If an economy has an equilibrium output of USD1,000 and government spending is set at USD200, what will happen to output?
If an economy has an equilibrium output of USD1,000 and government spending is set at USD200, what will happen to output?
What is the initial impact of a balanced fiscal package on aggregate demand?
What is the initial impact of a balanced fiscal package on aggregate demand?
What is the effect of a genuinely balanced budget change on output?
What is the effect of a genuinely balanced budget change on output?
