1.Approximately what percentage of U.S. households receive more in transfer payments and non-cash benefits than what they pay in total combined Federal taxes (Federal income tax, payroll tax, exercise taxes and corporate income tax?)

a.15%

b.30%

c.60%

d.50%

2.If the Federal Government were to increase deficit spending by $100 we could reasonably expect economic activity to increase, because of the multiplier, to increase by:

a.Something over $200

b.$200

c.By $100 or less

3.Most of the growth in global GDP over the next 10 years is expected to be in developed economies

a.True,

b.b. False.

4.The U.S. Social Security system was established as:

a.A 401k type of system

b.Apay-as-you-go type of system

c.A savings system

5.To promote faster economic growth and a higher standard of living we should have:

a. Low inflation and low marginal tax rates

b. High inflation and low marginal tax rates

c. High inflation and high marginal tax rates

d. More redistribution