Question 1 1 pts If an economy moves into a recession, causing that country to produce less than potential GDP, then: automatic stabilizers will cause tax revenue to decrease and government spending to increase. tax revenue and government spending will both be lower because of automatic stabilizers. tax revenue and government spending will both be higher because of automatic stabilizers. automatic stabilizers will cause tax revenue to increase and government spending to decrease. Question 2 1 pts To record a budget deficit in 2023, Oregon's state government would need to equalize spending and tax receipts in 2023. spend more money than it receives in taxes in 2023. take in larger tax funds than it needs for providing services to state residents. receive more in taxes than it spends in 2023. Question 3 1 pts If the government for the state of Indiana collects $564 million in tax revenues in 2023 and total state spending in the same year is $475 million, the result will be a budget surplus of $ million.Question 4 1 pts (Read carefully.) The government can use in the form of to increase the level of aggregate demand in the economy. a contractionary fiscal policy; a reduction in taxes an expansionary fiscal policy; an increase in government spending an expansionary fiscal policy; an increase in corporate taxes a contractionary fiscal policy; a decrease in government spending Question 5 1 pts The Medicare payroll tax is a proportional tax, meaning it is calculated as percentage of all wages earned. O a decreasing O a flat O an unquantifiable an increasing Question 6 1 pts Suppose there is a decrease to a country's budget surplus, requiring the government to borrow money in the financial capital market. The most likely result for the country's long-term interest rate would be an increase an ambiguous change (either increase or decrease) a decrease no changeQuestion 7 1 pts Under a policy for income, tax rates increase as a household's income increases. proportional tax O progressive tax tariff import tax O regressive tax Question 8 1 pts If government tax policy requires Julie to pay $30,000 in tax on annual income of $300,000 and Max to pay $9,900 in tax on annual income of $99,000, then the tax policy is O regressive O progressive proportional O expressive Question 9 1 pts If a country's economic data shows private savings of 507 million dollars, public savings of 124 million dollars, and a trade deficit of 49 million dollars, then what does investment equal in millions of dollars?Question 10 1 pts Suppose the government is running a budget deficit, but the economy is running a trade surplus. If the country's economic data show that the budget deficit equals 124 million dollars, the outflow of foreign savings equals 70 million dollars, and private investment equals 204 million dollars, then what does private savings (S) equal in millions of dollars? Question 11 1 pts If the U.S. government's budget surpluses are decreasing aggregate demand, and the economy is producing at a level that is substantially less than potential GDP, then an inflationary increase in the price level is a real danger government borrowing is likely to crowd out private investment the central bank might react with an expansionary monetary policy higher interest rates will crowd out private investment Question 12 1 pts When there is an inflow of foreign savings and a government budget deficit, the national savings and investment identity is written as O S + (M + X) +(T + G) =1 O S = G O S+ (M - X) = 1 + (G - T) O S+ (M + X) = 1 - (G - T)Question 13 1 pts When the government runs a budget deficit while the economy has a trade surplus, the national savings and investment identity is written as O S = 1 + (G - T) + (X - M) O S + (M + X) = 1 + (G + T) O S+ (M - X) + (G) = 1 O S = 1+ (M - X) + (T - G) Question 14 1 pts If Ricardian equivalence is true, then changes in offset any changes in the exports; government deficit corporate investment; government deficit private savings; government deficit imports; government deficit Question 15 1 pts To have a(n)_ in producing a product, one nation must produce that product at a lower cost in terms of other goods, relative to another nation. To have a(n) in producing a product, one nation must produce that product using fewer resources, relative to another nation. O relative advantage; marginal advantage economy of scale; diseconomy of scale comparative advantage; absolute advantage absolute advantage; comparative advantageQuestion 16 1 pts Using 100 worker hours. Canada can produce 6 bushels of corn or 30 tons of lumber. Using 100 worker hours. Mexico can produce 24 bushels of com or 12 tons of lumber. From the data. Mexico: 3' has a comparative advantage over Canada in the production of wheaL 0 should export lumber to Canada. 53 has a comparative advantage over Canada in the production of lumber. :3 has an absolute advantage over Canada In the production ot lumber. Question 1? 1 pts Using 100 worker hours. the United States can produce 15 bushels of wheat or 12 yards ot textiles. Using 100 worker hours. Germany can produce 15 bushels of wheat or 10 yards of textiles. The opportunity cost of one bushel of wheat in Germany is approximately: Cl 0.00 yards of textiles. "53' 12.00 yards of textiles. C' 10.00 yards of textiles. O 0.0? yards of textiles. Question 18 1 pts Which cfthe following is true? 0 A nation cannot have a comparative advantage in the production of every good. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. Anation cannot have an absolute advantage in the production of every good. Question 19 1 pts When combined with international trade, economies of scale can help promote even when a country has only one or two large producers. competition and variety a lack of innovation and responsiveness to consumer desires anticompetitiveness limited consumption choices Question 20 1 pts Alpha can produce either 30 apples or 20 oranges an hour, while Zeta can produce either 2 apples or 4 oranges an hour. With 100% specialization, which of the following terms of trade between apples and oranges would allow both Alpha and Zeta to gain by trade? 1 apple for 0.5 oranges 1 apple for 1 orange 1 apple for 4 oranges 1 apple for 3 oranges