Homework Help For Economics?

6.1. The government, and not a private firm in the market system, levies a tax on consumers and businesses for its provision of a public good, such as national defense.











A. Redistributing income





B. Maintaining competition





C. Promoting stability





D. Reallocating resources














6.2. Families with an annual income under $20,000 receive monthly transfer payments from the government.











A. Maintaining competition





B. Reallocating resources





C. Redistributing income





D. Promoting stability














6.3. The government decides that it would cut taxes in an attempt to lead the economy out of a serious recession.











A. Maintaining competition





B. Redistributing income





C. Reallocating resources





D. Promoting stability








Which one of the following situations represents a case of a positive externality?











A. A paid tutor instructing Antonio in economics as fellow classmate Cathy listens in without anybody knowing it





B. Using a leaf blower on your yard early on a Sunday morning





C. A rock concert held next to the library during final exam week





D. One person smoking cigars among several nonsmokers in a closed room











Goods are rival if:











A. It is possible to prevent an individual from using the good





B. The quantity of the good is affected by the price a consumer pays for the good





C. It is NOT possible to prevent an individual from using the good





D. Consumption of a good by one person decreases consumption by another person











Which of the following is an example of a public good?











A. Cable television





B. A soda from a vending machine in a government building





C. A streetlight





D. A movie playing at a theater











Consider the economic activity surrounding the War on Terror in the context of a circular flow diagram that includes both the public sector (government) and private sector (firms and households). Which of the following is an example of the government interacting directly with the product market as part of the war effort?











A. The government raises income taxes to help pay for the War on Terror.





B. The government pays wages to soldiers to fight in the Middle East.





C. The government funds security measures for ports, both in the United States and abroad, to help ensure that firms can safely import and export goods during a period of global instability.





D. The government contracts with civilian companies, like Federal Express, to help airlift supplies to the Middle East.











In 2006, payroll taxes amounted to 15.3% of wages up to $94,200, and 2.9% on all additional earnings.





For example, if someone earned $100,000, the total amount paid in payroll taxes would be 15.30% of $94,200 plus 2.90% of $5,800, for a total of about $14,580.





(Note that this would be split evenly between the worker and the employer--that is, the worker's $100,000 income would be reduced by only $7,290.)





11.1. Susan earns $50,000 per year. How much do she and her employer combined pay in payroll taxes, as a fraction of her income?











A. 3.90%





B. 12.40%





C. 15.30%





D. 19.10%





In general, local governments raise most of their revenues through ______ and spend these revenues primarily on _________.

Homework Help For Economics?
This is not really learning economics just terminology. Every American should be familiar with how economics works. The best overview ever written is "Basic Economics" by Thomas Sowell.
Reply:1. D





2. C





3. D





4. A





5. D





6. C





7. D





8. C





9. Taxation





10. National Defense
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