Unit IV Part 1

Quizzo

Round One1. Implementing a 12% tax on all personal income regardless of one’s income level is what

type of tax?

2. Our federal income tax structure, where those who make more money pay a higher percentage of taxes, is what type of tax?

3. Cash made cutting lawns in the summer wouldn’t be counted towards GDP. Why not?

4. What is inflation?

5. Steel bought by Jeep from Bethlehem Steel used in the production of their vehicles would not be counted towards GDP. Why not?

Round One6. What has the overall trend of GDP in the United States been?

7. In the 20th century, the worst period of U.S. economic downturn was known as the…?

8. Which would best describe Microeconomics?A. The National budgetB. Trade between two countriesC. An international trade agreementD. The sale of cookies in the CB East cafeteria

9. Which of the following inflation rates are seen as “normal” for the United States?A. Creeping rateB. Galloping rateC. HyperinflationD. No inflation rate is seen as normal

10. What is the difference between GDP and GNP?

Round One1. Implementing a 12% tax on all personal income regardless of one’s income level is what

type of tax?1. Proportional

2. Our federal income tax structure, where those who make more money pay a higher percentage of taxes, is what type of tax?

1. Progressive

3. Cash made cutting lawns in the summer wouldn’t be counted towards GDP. Why not?1. It is “under the table”

4. What is inflation?1. The general rise in the price of goods and services

5. Steel bought by Jeep from Bethlehem Steel used in the production of their vehicles would not be counted towards GDP. Why not?

1. Goods bought towards the making of other goods are only calculated in the final product

Round One6. What has the overall trend of GDP in the United States been?

Growth

7. In the 20th century, the worst period of U.S. economic downturn was known as the…?Great Depression

8. Which would best describe Microeconomics?A. The National budgetB. Trade between two countriesC. An international trade agreementD. The sale of cookies in the CB East cafeteria

9. Which of the following inflation rates are seen as “normal” for the United States?A. Creeping rateB. Galloping rateC. HyperinflationD. No inflation rate is seen as normal

10. What is the difference between GDP and GNP?GDP is products make in America, regardless of by whom. GNP is products

made by Americans, regardless of which country it is in

Round Two1. This type of unemployment occurs as economic activity slows down and recessions

occur

2. A decline in economic activity over a period of 6 months (2 quarters) is known as

3. Come December 26th, Rudolph the Red-Nosed Reindeer will be out of a job. What type of unemployment will our “bright” friend be going through?

4. Johnny receives a 4% increase in pay for the year…unfortunately…the inflation rate for that year is 6%! What is most likely going to happen to Johnny’s financial situation for that year???

A. More income, thus more spending power!B. More income, but less purchasing power C. Cost of living and purchasing power will decreaseD. Cost of living and purchasing power will increase

Round Two5. This type of unemployment is due to normal turnover in the job market as people

seek new jobs or are in between jobs

6. A tax put on a product to discourage consumption is known as?

7. Sales tax has what type of tax structure?

8. Which would best describe Macroeconomics?A. The sale of cookies in the CB East cafeteriaB. The taxes Buckingham residents pay to fund CBSDC. The national budgetD. The business done by a deli in Buckingham

9. Which of Adam Smith’s four maxims describes the idea that the rich should pay a higher tax percentage than the poor?

10. What are the three reasons governments tax?

Round Two1. This type of unemployment occurs as economic activity slows down and recessions

occur1. Cyclical

2. A decline in economic activity over a period of 6 months (2 quarters) is known as1. Recession

3. Come December 26th, Rudolph the Red-Nosed Reindeer will be out of a job. What type of unemployment will our “bright” friend be going through?

1. Seasonal

4. Johnny receives a 4% increase in pay for the year…unfortunately…the inflation rate for that year is 6%! What is most likely going to happen to Johnny’s financial situation for that year???

A. More income, thus more spending power!B. More income, but less purchasing power C. Cost of living and purchasing power will decreaseD. Cost of living and purchasing power will increase

Round Two5. This type of unemployment is due to normal turnover in the job market as people seek new jobs

or are in between jobs5. Frictional

6. A tax put on a product to discourage consumption is known as?5. Sin Tax

7. Sales tax has what type of tax structure?5. Regressive

8. Which would best describe Macroeconomics?A. The sale of cookies in the CB East cafeteriaB. The taxes Buckingham residents pay to fund CBSDC. The national budgetD. The business done by a deli in Buckingham

9. Which of Adam Smith’s four maxims describes the idea that the rich should pay a higher tax percentage than the poor?

equity

10. What are the three reasons governments tax?Pay for security, employees, and government programs/services