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ECO 450 Week 11 Final Exam Part 1

Question 1

3 out of 3 points

A worker earns $2,000 per month before taxes. He pays $140 per month payroll tax on those wages. In addition, the income taxes on those wages are $360 per month. On retirement, the worker receives a Social Security pension of $750 per month. Which of the following statements is true?

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Question 2

3 out of 3 points

The Social Security Act was implemented in the United States in:

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Question 3

3 out of 3 points

The gross replacement rate:

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Question 4

Social Security tax rates can be reduced if:

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Question 5

The Social Security retirement system:

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Question 6

The induced-retirement effect of the Social Security pension system induces workers to:

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Question 7

Which of the following is true about the Medicare program in the United States?

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Question 8

The percent of total health care costs in the United States paid for by governments is approximately:

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Question 9

The government program that provides the health insurance to the poor in the United States is called:

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Question 10

Under national health insurance as operated in Great Britain,

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Question 11

Most of the medical bills of Americans in the United States are paid by:

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Question 12

What is the moral hazard associated with third party payment for health services?

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Question 13

A proportional income tax has an average tax rate that:

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Question 14

A tax on real estate is a:

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Question 15

If the average tax rate under a progressive tax rate structure is 35%, a possible marginal tax rate is:

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Question 16

3 out of 3 points

A 5-percent retail sales tax on all consumer purchases in a state is imposed. The sales tax is:

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Question 17

Taxes:

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Question 18

Which of the following countries has the highest average tax rate relative to GDP?

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Question 19

The efficiency-loss ratio relative to tax is:

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Question 20

If a lump-sum tax is imposed, the slope of the new budget line relative to the budget line prior to the tax:

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Question 21

3 out of 3 points

Viewed from origin a price distorting tax creates a new budget line with a ______ slope relative to the budget line without the tax.

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Question 22

A $0.30 per unit tax is imposed on a good that reduces the quantity supplied and demanded by 1000 units. What is the deadweight loss (ignore price elasticities)?

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Question 23

Other things being equal, the more inelastic the demand for a taxed good,

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Question 24

The supply of new cars is perfectly elastic. A $400 per car tax is levied on buyers. As a result of the tax,

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Question 25

3 out of 3 points

The federal government, its agencies, and the Federal Reserve System:

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Question 26

The National Income and Product Accounts budget balance reflects:

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Question 27

The total dollar value of the federal debt outstanding is:

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Question 28

The debt of state and local governments is mostly:

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Question 29

If the federal government runs a surplus consistently, then which of the following is likely to occur?

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Question 30

An increase in government borrowing has no effect on the willingness of citizens to save or on the demand for credit. Increased borrowing to cover deficits will therefore:

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