Strayer ECO 405 QUIZ CHAP 14 (2014) with 100% Correct Answers

•Question 1

 A payment from the government to a federal employee is a

•Question 2

 An increase in government borrowing will cause which of the following?

•Question 3

 The gasoline tax is often used to illustrate the benefits received principle of taxation because

•Question 4

 An efficient level of government expenditures is that level at which

•Question 5

 A cash payment from the government to an individual, based on need, is an example of a

•Question 6

 At the federal level, the largest revenue generating tax is the

•Question 7

 Which of the following is the major tax source of the federal government?

•Question 8

 The ability to pay principle of taxation suggests that people with more income should pay more taxes. This means that

•Question 9

 A national crime lab used to prevent criminal activity nationwide is an example of a

•Question 10

 The single most important source of tax revenue for the local governments in the United States is the

•Question 11

 A tax that is shifted forward is a tax that falls on

•Question 12

 Proportional tax rates mean that the ratio of tax collection to income

•Question 13

 Assuming negative externalities in production, the type of government action that could bring about an efficient level of production would be

•Question 14

 Characteristics of public goods and services include which of the following?

•Question 15

 A tax that is shifted backward is a tax that falls on

•Question 16

 As originally designed, Social Security was to be financed as a

•Question 17

 If your insurance company agrees to pay a fixed fee for you to receive a given treatment (for example, $5,000 for an appendectomy), the company is using which of the following?

•Question 18

 If people choose to work more hours because the Social Security tax reduces their real wage, their behavior is dominated by the

•Question 19

 If I spend more each year because I know that I will receive Social Security payments when I retire, I am exhibiting which of the following effects?

•Question 20

 If a program's benefits are funded out of current payments, it is which type of system?

•Question 21

 If people choose to work fewer hours because the Social Security tax reduces their real wage, their behavior is dominated by the

•Question 22

 Part C of the Medicare program (Medicare + Choice)

•Question 23

 The Medicare Modernization Act, passed in 2003, established

•Question 24

 The largest social insurance program in the United States is

•Question 25

 The payment and delivery of health care service under a managed care system is based on

•Question 26

 If I put extra into a savings account so that I can leave assets to my children to compensate them for their payments into the Social Security system, I am exhibiting which of the following effects?

•Question 27

 The most significant factor that threatens the financial stability of the Social Security system is the

•Question 28

 The Medicare program

•Question 29

 Part A of the Medicare program (Hospital Insurance) is financed primarily by

•Question 30

 The most simple and direct way to postpone the looming Social Security financial crisis is to