Please answer the questions below

A __________________________ policy will cause a greater share of income to be collected from those with high incomes than from those with lower incomes.

Question 1 options:

1)	proportional tax

2)	regressive tax

3)	progressive tax

4)	excise tax

Question 2 (3 points)

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The ________________ refers to the gap that can exist between what a nation's _____________ and a nation's ____________________.

Question 2 options:

1)	balance of trade; producers sell abroad; imports

2)	merchandise trade balance; exports; imports

3)	trade surplus; exported services; imported goods

4)	trade deficit; producers purchase abroad; exports

Question 3 (3 points)

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The idea behind comparative advantage reflects the possibility that one party:

Question 3 options:

1)	may be able to produce everything relatively more efficiently than another party

2)	may be able to produce something at a lower dollar cost than another party

3)	with an absolute advantage in producing two different may export goods both of those goods to the other party

4)	may be able to produce something at a lower opportunity cost than another party

Question 4 (3 points)

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If government tax policy requires Jane to pay $25,000 in taxes on annual income of $200,000 and Mary to pay $10,000 in tax on annual income of $100,000, then the tax policy is:

Question 4 options:

1)	regressive

2)	progressive

3)	proportional

4)

optional

Question 5 (3 points)

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Which category of the money supply would you be contributing to if you invest in money market funds?

Question 5 options:

1)

M2

2)

M1

3)	time deposits

4)	savings deposits

Question 6 (3 points)

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When the share of individual income tax collected by the government from people with higher incomes is smaller than the share of tax collected from people with lower incomes, then the tax is ____________________.

Question 6 options:

1)

optional

2)	proportional

3)	progressive

4)	regressive

Question 7 (3 points)

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In macroeconomics, a _______________ describes the common way in which market values are measured in an economy.

Question 7 options:

1)	unit of account

2)	medium of exchange

3)	store of value

4)	unit of exchange

Question 8 (3 points)

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A ________________________________ is calculated as a flat percentage of income earned, regardless of level of income.

Question 8 options:

1)	progressive tax

2)	regressive tax

3)	proportional tax

4)	estate and gift tax

Question 9 (3 points)

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With respect to measuring the money supply, which of the following terms describes a checking account?

Question 9 options:

1)	demand certificates

2)	currency deposits

3)	cash certificates

4)	demand deposits 16. _________________________ are included in the aggregate amount of MI money currently in circulation. a. Savings deposits *b. Travelers checks c. Short-term bonds d. Foreign currency deposits

Question 10 (3 points)

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Trade surpluses and trade deficits can be __________________ for an economy in certain circumstances.

Question 10 options:

1)	beneficial

2)

harmful

3)	either A. or B.

4)	neither A. or B.

Question 11 (3 points)

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If exports and imports:

Question 11 options:

1)	are imbalanced, then a trade surplus exists

2)	are imbalanced, then a trade deficit exits

3)	are equal, then trade is balanced

4)	are equal, then the economy is unhealthy

Question 12 (3 points)

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identifies the area where a producer's absolute advantage is relatively greatest, or where the producer's absolute disadvantage in productivity is relatively least.

Question 12 options:

1)	Relative advantage

2)	Opportunity cost

3)	Productivity advantage

4)	Comparative advantage

Question 13 (3 points)

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Colombia produces coffee with less labor and land than any other country; it, therefore, necessarily has:

Question 13 options:

1)	a comparative advantage in coffee production

2)	both a comparative and absolute advantage in coffee production

3)	an absolute advantage and comparative disadvantage in coffee production

4)	an absolute advantage in coffee production

Question 14 (3 points)

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Alpha can produce either 18 oranges or nine apples an hour, while Beta can produce either 16 oranges or four apples an hour. The opportunity cost of producing one orange for Alpha and Beta, respectively, are:

Question 14 options:

1)	0.25 apples; 0.5 apples

2)	9 apples; four apples

3)	0.5 apples; 0.25 apples

4)	two apples; four apples

Question 15 (3 points)

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Which of the following would function as a store of value and also provide a medium of exchange and unit of account?

Question 15 options:

1)

a new car

2)

an iPod

3)

an estate

4)	gym membership

Question 16 (3 points)

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If South Dakota's governor reports a budget surplus in 2011, that state government likely:

Question 16 options:

1)	received more in taxes than it spent in that year

2)	increased the proportional tax level

3)	equalized spending and taxes in that year

4)	increased the corporate income tax rate

Question 17 (3 points)

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A country's current account balance refers to a broad measure of the balance of trade that includes:

Question 17 options:

1)	merchandise, services, and foreign capital investments

2)	goods, foreign capital investments, and exported domestic services

3)	goods and services, international flows of income, and foreign aid

4)	merchandise, foreign aid, and imported domestic services

Question 18 (3 points)

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Which of the following would be classified in the M1 category of the money supply?

Question 18 options:

1)	savings deposits

2)	money market deposit

3)	demand deposits

4)	certificates of deposit

Question 19 (3 points)

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The term __________ is used to describe what those in one country buy from those in other countries.

Question 19 options:

1)

exports

2)

imports

3)

trade

4)

surplus

Question 20 (3 points)

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If government tax policy requires Bill to pay $20,000 in taxes on annual income of $200,000 and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is:

Question 20 options:

1)	regressive

2)	progressive

3)	proportional

4)

optional