1. Which of the following is true? - [ ] if you buy something in California, you won't owe Nevada tax on it - [ ] The feds can tax states, but not the other way around - [ ] To tax someone a state must have a "nexus" with them - [ ] All of these answers are correct. 2. The primary source of revenue for the US government through most of the 1700s and 1800s was * capitation taxes * tariffs * income taxes * excise taxes Money laundering to bring income earned outside the US into the country without paying taxes would be an example of * intersticial tax reduction * tax avoidance O tax evasion O tax capitation 3. A regressive tax hits ___ people the hardest as a percent of their income. - [ ] poor - [ ] young - [ ] middle class - [ ] rich 4. Tax incidence refers to: * who a tax is intended to be paid by * who a tax is actually paid by, regardless of who is supposed to pay it * the relationship of taxes paid in one year to carry over to other years * things that people refer to as "loopholes" to lower taxes 5. The US government tax exports, and states tax imports. can, cannot O cannot, can * cannot, cannot * can, can 6. While there are technically 70,000 governments in the US, only the US government, the states, cities, and counties can actually charge you taxes and fees. O True False 7. The United States is a(n) system for its governments, and most of the world has a(n) system. federal, republican O federal, unitary O republican, unitary federal, bicameral 8. The income tax is designed to be: (though it might not be in practice) O regressive * responsive * progressive * proportional 9. When we take an action that allows us to not pay taxes on some of our income in a legal way, by taking advantage of rules written into the tax code, that is called tax * evasion * avoidance O deducation consideration 10. An example of an earmarked tax would be: O gasoline tax * corporate income tax * sales tax * property tax 11. When a tax increase causes a consumer to spend less in total across all goods, we call that the ____ effect. * income * consumption * substitution O expenditure 12. The Founding Fathers intended the US government to be funded by * excise and income taxes * tariffs and income taxes O capitation taxes and tariffs tariffs and excise taxes 13. The highest marginal income tax rate on millionaires in US history was about 50% 40% 70% 0 90% 14. If a good has inelastic demand and we put an excise tax on it, the tax will * be paid by the governmentbe split about even consumer/business * mostly be paid by the consumermostly be paid by the business 15. The Fed, since March of 2020, has been using a(n) * Ample Reserve Regime * Capital Management Regime O Actual Reserve Regime Managed Reserve Regime 16. According to your readings, the future of Bitcoin or other cryptocurrencies depends on its ability to function as a(n) O medium of exchange O unit of account * meaure of utility * store of value 17. Tobacco leaves and deer have both been used as money in US history. False O True 18. Tobacco leaves and deer have both been used as money in US history. O False True 19. When David Hume called money the oil, not the wheels, of trade, he meant which function of money? moderator of wealth O medium of exchange * flow of funds * unit of account 20. The Federal Reserve has replaced Fractional Reserve banking with a new system which: * sets interest rates each bank must use * creates various requirements specific to each bank * requires a percentage of total assets * requires a percentage of total liabilities 21. The book and movie Wizard of Oz is in favor of a gold standard O all of these O about the Presidential election of 1896 critical of the Progressive Movement 22. Money that has value because of a law, not because it is made of something of value, is called money * free * asset * financial O fat 23. The Federal Reserve increases the money supply by O printing bonds * buying stock * buying bonds * selling bonds 24. Countries that have central banks that are independent of their government, like the Fed, have * much lower average unemployment rates * much higher rates of economic growth * much lower housing prices O much lower average inflation rates 25. Which of the following is NOT a function of a Central Bank? Insuror of deposits O Lender of Last Resort * Regulator of banks * Banker's bank 26. Most money in the world is created by * government printing * government borrowing * counterfeiting * banks making loans 27. In a fractional reserve banking system, banks must keep a percentage of their in the bank as reserves. * securities * assets * loans * deposits 28. In the past 10 years, Milton Friedman's theory about what should happen if the money supply is rapidly and significantly increased has been correct in predicting what should happen to the economy. * False * True 29. According to Milton Friedman, is always and everywhere a monetary phenomenon. * economic growth * unemployment * recession * inflation 30. The US went unofficially onto gold in * 1934, 1972 * 1873, 1934 * 1873, 1900 * 1900, 1972 31. The Progressive Movement of the late 1800s fought for: * bimetallism * free banking * the gold standard * the removal of the Federal Reserve 32. Which of the following is true? * Economists believe bureaucrats act in society's interest not their own * The majority of Americans can name their Congressional Representative * Research confirms that politicians primary concern is re-election, not doing the right thing.Companies that donate to policitians are more likely to win government contracts 33. Which of the following is false? * single issue votes are less likely to donate to political campaigns * neither 50% majority nor 2/3 supermajority voting always protects the minority * we used sugar prices as an example of rational ignorance affecting peole * It's possible to have a majority of votes in the US senate who represent less than 1/4 of the US population 34. One of the primary founders of Public Choice Theory was * James Buchanan * James Madison * Milton Friedman * Thomas Aquinas 35. The Federalist Papers were primarily written by * Madison and Hamilton * Madison and Monroe * Jefferson and Hamilton * Madison and Jefferson 36. Rational ignorance explains: * All of these answers are correct. * why most people get their news from social media or comedy shows * why the tall guy usually winswhy many don't sort out fake news from truth 37. If Congress attaches a bunch of "presents" to a bill which provide money for individual districts for things those districts don't need, but which will help the congressman from the district get re-elected, this is called - [ ] pork barrel * voter casting * logrolling * pump priming 38. Tip O'Neill, former Speaker of the House, said that all politics is * clandestine * reciprocal * local * blind 39. Economic theory says that political parties will tend to nominate candidates who are to the right or left of the middle of preferences of all voters. * True * False 40. The idea that politicians who want to be elected or re-elected should move toward the middle of range of voters is called the O mid-voter model O median voter model O modular voter model rational voter model 41. The Founding Fathers envisioned a strong Congress and weaker President because they were afraid that a strong President and weaker Congress would result in - [ ] lack of progress for the country - [ ] the the president becoming a tyrant - [ ] an out of control budget - [ ] too much democracy 42. Economic theory says, because we use majority voting, that the number of candidates will not change the outcome of an election. The same person will end up winning regardless of whether there are two or 12 people running. * True * False 43. When one politician trades their vote on an issue to another politician to get that politician to vote a certain way on another issue, we call that: * sugar sweetening * log rolling * cheese grating * pork barrel 44. Rational ignorance says that politicians should find issues that benefit a small number of people, which can be paid for by a large group of others who don't care about that issue. O False O True 45. Public Choice theory says that optimal behavior for a politician is to maximize: * the money they raisetheir change to get elected or re-elected * the nation's welfare * their salaries 46. Rational ignorance is the idea that if the benefits I get or costs I pay because of who is elected to office are small, I should keep my costs of deciding who to vote for as low as possible. * True * False 47. if you act in your own self-interest, respond to incentives, and maximize something, an economist would say you arera(n): * Classical Liberal * rational actor * market optimizer * free rider 48. Rational ignorance implies there will be few single issue voters, since identifying that issue is costly. O True False Next 49. According to your professor, the United States has a based monetary system. asset faith O real commodity