Question 1

Which of the following is a true statement concerning federal transfer payments?

Accepted Answer

A)  Transfer payments ultimately must be repaid to the government by recipients.
B)  Transfer payments are included in the imports category of GDP.
C)  Transfer payments are included in the net exports category of GDP.
D)  Transfer payments are payments made by the government for which no good or service is currently received in return.E) B) and C)
F) A) and D)

Question 2

Statement I: Most Americans pay more in Social Security tax than in personal income tax.
Statement II: A tax on cigarettes is more regressive than a tax on long distance phone calls.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) B) and D)
F) None of the above

Question 3

How much is the marginal tax rate of each of these individuals?
A)Ms.Smith paid $2,133,000 in personal income tax.
B)The Green family paid $280 in personal income tax.
C)The Johnsons,a couple with four children,had an income of $12,000.
A.35%
B.10%
C.0%

Accepted Answer

The answer of How much is the marginal tax rate...

Question 4

The top federal personal income tax bracket is now _______ percent.

Accepted Answer

A)  25
B)  35
C)  55
D)  70
E)  85F) C) and D)
G) All of the above

Question 5

Federal spending on defense comes to about _____ per person in the United States.

Accepted Answer

A)  $1,000
B)  $1,900
C)  $2,700
D)  $3,500E) A) and B)
F) All of the above

Question 6

Which of the following is true?

Accepted Answer

A)  The United States spends more as a percentage of GDP than any other nation on foreign aid.
B)  The largest federal government purchase of goods and services is Social Security.
C)  Government purchases,but not transfer payments,are counted in Gross Domestic Product (GDP) .
D)  Net interest on the national debt is only one percent of total federal government spending.E) A) and B)
F) A) and C)

Question 7

The tax rates embodied in the federal personal income tax are such that

Accepted Answer

A)  a rising absolute amount,but a declining proportion,of income is paid in taxes.
B)  the marginal and average tax rates are equal,making the tax progressive.
C)  the average tax rate rises more rapidly than does the marginal tax rate.
D)  the marginal tax rate is higher than the average tax rate,causing the average tax rate to rise.E) A) and D)
F) A) and B)

Question 8

The fastest growing source of federal tax revenue is the _____ tax.

Accepted Answer

A)  personal income
B)  corporate income
C)  payroll
D)  exciseE) C) and D)
F) A) and C)

Question 9

The highest personal income tax bracket in 1992 was _____ percent.

Accepted Answer

The answer of The highest personal income tax bracket in...

Question 10

Which statement is true?

Accepted Answer

A)  The Kemp-Roth Tax Cut of 1981 and the Tax Reform Act of 1986 both lowered federal personal income tax receipts.
B)  The Kemp-Roth Tax Cut of 1981 and the Tax Reform Act of 1986 raised federal personal income tax receipts.
C)  The Kemp-Roth Tax Cut of 1981 raised federal personal income tax receipts while the Tax Reform Act of 1986 lowered them.
D)  The Kemp-Roth Tax Cut of 1981 lowered federal personal income tax receipts while the Tax Reform Act of 1986 raised them.E) B) and C)
F) A) and D)

Question 11

The federal government spends

Accepted Answer

A)  slightly more on defense than on Social Security.
B)  slightly more on Social Security than on defense.
C)  about the same on Social Security as on defense.D) A) and B)
E) A) and C)

Question 12

In 2011 when the "Bush tax cuts" expire the percentage tax rate for the rich will revert back to the (pre-Bush) rate of ____________ percent if congress doesn't pass a new law.

Accepted Answer

A)  36.5
B)  39.6
C)  44.0
D)  70.0E) B) and C)
F) A) and D)

Question 13

Because of the Great Recession of 2007-2008,we are currently collecting _________ per year in social security funds than we are distributing to recipients.

Accepted Answer

The answer of Because of the Great Recession of 2007-2008,we...

Question 14

Excise taxes

Accepted Answer

A)  are aimed at a specific good or service.
B)  are aimed at a wide range of products.
C)  are direct taxes.
D)  are generally progressive in nature.E) A) and C)
F) B) and D)

Question 15

Warren Buffett,the noted stock market investor,and world's second richest man has noted:

Accepted Answer

A)  his average tax rate is lower than his secretary.
B)  his world ranking would increase substantially if taxes were lower $20,000
C)  his taxes were so high that he was supporting the government by himself.
D)  his wealth was very high because of the low tax rates enjoyed by the rich.E) C) and D)
F) B) and D)

Question 16

Sue Hawkins earns $100,000.How much Social Security tax does she pay?

Accepted Answer

$100,000 *...

Question 17

Taxable Income  Taxes Paid $20,000$040,0002,00060,0004,00080,0008,500\begin{array} { c c } 	ext { Taxable Income } & 	ext { Taxes Paid } \\$ 20,000 & \$ 0 \40,000 & 2,000 \60,000 & 4,000 \80,000 & 8,500\end{array} Taxable Income $20,00040,00060,00080,000​ Taxes Paid $02,0004,0008,500​ 
-The tax represented here is

Accepted Answer

A)  progressive.
B)  proportional.
C)  regressive.
D)  none of the choices. E) None of the above
F) A) and D)

Question 18

According to Adam Smith,each of these was an economic role of government except

Accepted Answer

A)  protecting society from violence and invasion.
B)  protecting individuals from oppression.
C)  erecting public works which would not be in the interest of private individuals to erect.
D)  redistributing some income from the rich to the poor.E) A) and C)
F) C) and D)

Question 19

In 2010,the upper middle class is taxed at a marginal rate of _____ percent,while the working class and lower middle class is taxed at a marginal rate of _____ percent.

Accepted Answer

The answer of In 2010,the upper middle class is taxed...

Question 20

The Social Security

Accepted Answer

A)  tax is capped at $43,000.
B)  system is currently accumulating surpluses.
C)  trust fund,by current estimates,will be empty by 2099.
D)  is a progressive tax.E) C) and D)
F) A) and C)

Exam 7: The Government Sector

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The highest personal income tax bracket in 1992 was _____ percent.

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Warren Buffett,the noted stock market investor,and world's second richest man has noted:

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Statement I: Most Americans pay more in Social Security tax than in personal income tax. Statement II: A tax on cigarettes is more regressive than a tax on long distance phone calls.

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The Social Security

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Because of the Great Recession of 2007-2008,we are currently collecting _________ per year in social security funds than we are distributing to recipients.

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Which of the following is true?

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Federal spending on defense comes to about _____ per person in the United States.

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The top federal personal income tax bracket is now _______ percent.

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The federal government spends

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In 2011 when the "Bush tax cuts" expire the percentage tax rate for the rich will revert back to the (pre-Bush) rate of ____________ percent if congress doesn't pass a new law.

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Excise taxes

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The fastest growing source of federal tax revenue is the _____ tax.

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Which statement is true?

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How much is the marginal tax rate of each of these individuals? A)Ms.Smith paid $2,133,000 in personal income tax. B)The Green family paid $280 in personal income tax. C)The Johnsons,a couple with four children,had an income of $12,000. A.35% B.10% C.0%

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The tax rates embodied in the federal personal income tax are such that

Correct AnswerverifiedShow Answer

In 2010,the upper middle class is taxed at a marginal rate of _____ percent,while the working class and lower middle class is taxed at a marginal rate of _____ percent.

Correct AnswerverifiedShow Answer

According to Adam Smith,each of these was an economic role of government except

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Which of the following is a true statement concerning federal transfer payments?

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Sue Hawkins earns $100,000.How much Social Security tax does she pay?

Correct Answerverified$100,000 *...View AnswerShow Answer

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In 2010,the upper middle class is taxed at a marginal rate of _ percent,while the working class and lower middle class is taxed at a marginal rate of _ percent.

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$100,000 *...
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