Economics MCQ 1-5

  

1. budget deficits are appropiate during:
a. recessions, but not inflations.
b. inflations, but not recessions.
c. recessions and inflations.
d. neither recessions nor inflations.
 

2. keynes' analysis of the great depression led to which of the following recommendation regarding government policy?
a. an annually balanced budget.
b. a decrease in government spending.
c. an increase in government spending.
d. an increase in taxes.
 

3. during recessions:
a. saving rise.
b. corporations pay much less corporate income taxes.
c. fewer people collect unemployment benefits.
d. the government will raise taxes and run a budget surplus.
 

4. in 1930s, john maynard keynes said that our main economic problem was:
a. weak aggregate demand.
b. too much government spending.
c. big budget deficits.
d. high interest rates.
 

5. when government expenditures in a given year exceed tax receipts, there exists:
a. a budget surplus.
b. a budget deficit.
c. public revenue.
d. full-employment taxation.