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Role of Government in Macroeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following statements is FALSE regarding the government's fiscal policy toolkit?

Question 2 2. The economy has entered a recession with high unemployment. The government will use its fiscal policy toolkit to do what?

Question 3 3. _____ fiscal policy addresses a _____ economy, while _____ fiscal policy addresses an _____ economy.

Question 4 4. Who is a free rider?

Question 5 5. What term does this define: a product or service with a use that is not decided by any one person or persons, but by the society as a whole and good is typically financed by the government, through the use of tax revenues.

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Question 6 6. Who postulated the public good theory?

Question 7 7. All of the following are ways that the U.S. government promotes the economic interests of businesses, EXCEPT:

Question 8 8. What is a government MOST likely to do to protect the interests of agricultural businesses?

Question 9 9. _____ reduce the amount of taxable income a business has to report.

Question 10 10. Which of the following is considered a broad economic goal of the United States?

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Question 11 11. What does it mean for the United State economy to work efficiently?

Question 12 12. Which of the following is not considered desirable, according to U.S. economic goals?

Question 13 13. Which of the following will most likely result, due to the replacement of some portion of the federal personal income tax with a national sales tax?

Question 14 14. Which of the following tax rates may affect an individual's decision to work harder and earn additional income?

Question 15 15. What is a progressive tax code?

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Question 16 16. Why would the government intervene in the case of a monopoly?

Question 17 17. Which of the following best describes the politics of government intervention in the economy of the United States?

Question 18 18. In which of the following ways does the government become involved in the economy?

Question 19 19. Firms with market power are referred to as

Question 20 20. Examples of companies with significant market power are

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Question 21 21. The four main types of market structures are

Question 22 22. The Federal Reserve has noticed that expenditures are decreasing and that the number of loans requested has decreased significantly. What will they aim to do to increase the number of loan requests?

Question 23 23. For three quarters in a row, economic growth increased by 3%, 5% and 7%. As it was close to the election, the government did not try to stabilize the growth. In the last quarter of the year, the economy drastically fell by 5%. Which of the following best describes such an occurrence?

Question 24 24. Which of the following is NOT true about how the government protects the U.S. economy?

Question 25 25. What does the word 'fiscal' refer to when discussing fiscal policy?

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Question 26 26. Which of the following is the best example of the marriage between a private good and a public good?

Question 27 27. Sunshine Solar receives a $2,000 reduction on its federal taxes for each solar-energy installation it performs. This is an example of a _____.

Question 28 28. Gross domestic product is an important measure of which of the following goals?

Question 29 29. In the case of a proportional tax, individuals are taxed at a rate that is _____.

Question 30 30. Price gouging is a practice that is restricted by the government because of which of the following reasons?

Role of Government in Macroeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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