1. Unit IV Part 1 Quizzo

2. 1.Implementing a 12% tax on all personal income regardless of one’s income level is what type of tax? 2.Our federal income tax structure, where those who make more money pay a higher percentage of taxes, is what type of tax? 3.Cash made cutting lawns in the summer wouldn’t be counted towards GDP. Why not? 4.What is inflation? 5.Steel bought by Jeep from Bethlehem Steel used in the production of their vehicles would not be counted towards GDP. Why not?

3. 6. What has the overall trend of GDP in the United States been? 7. In the 20 th century, the worst period of U.S. economic downturn was known as the…? 8. Which would best describe Microeconomics? A. The National budget B. Trade between two countries C. An international trade agreement D. The sale of cookies in the CB East cafeteria 9. Which of the following inflation rates are seen as “normal” for the United States? A. Creeping rate B. Galloping rate C. Hyperinflation D. No inflation rate is seen as normal 10. What is the difference between GDP and GNP?

4. 1.Implementing a 12% tax on all personal income regardless of one’s income level is what type of tax? 1.Proportional 2.Our federal income tax structure, where those who make more money pay a higher percentage of taxes, is what type of tax? 1.Progressive 3.Cash made cutting lawns in the summer wouldn’t be counted towards GDP. Why not? 1.It is “under the table” 4.What is inflation? 1.The general rise in the price of goods and services 1.Steel bought by Jeep from Bethlehem Steel used in the production of their vehicles would not be counted towards GDP. Why not? 1.Goods bought towards the making of other goods are only calculated in the final product

5. 6. What has the overall trend of GDP in the United States been? Growth 7. In the 20 th century, the worst period of U.S. economic downturn was known as the…? Great Depression 8. Which would best describe Microeconomics? A. The National budget B. Trade between two countries C. An international trade agreement D. The sale of cookies in the CB East cafeteria 9. Which of the following inflation rates are seen as “normal” for the United States? A. Creeping rate B. Galloping rate C. Hyperinflation D. No inflation rate is seen as normal 10. What is the difference between GDP and GNP? GDP is products make in America, regardless of by whom. GNP is products made by Americans, regardless of which country it is in

6. 1.This type of unemployment occurs as economic activity slows down and recessions occur 2.A decline in economic activity over a period of 6 months (2 quarters) is known as 3.Come December 26 th, Rudolph the Red-Nosed Reindeer will be out of a job. What type of unemployment will our “bright” friend be going through? 4. Johnny receives a 4% increase in pay for the year…unfortunately…the inflation rate for that year is 6%! What is most likely going to happen to Johnny’s financial situation for that year??? A. More income, thus more spending power! B. More income, but less purchasing power C. Cost of living and purchasing power will decrease D. Cost of living and purchasing power will increase

7. 5.This type of unemployment is due to normal turnover in the job market as people seek new jobs or are in between jobs 6.A tax put on a product to discourage consumption is known as? 7.Sales tax has what type of tax structure? 8. Which would best describe Macroeconomics? A. The sale of cookies in the CB East cafeteria B. The taxes Buckingham residents pay to fund CBSD C. The national budget D. The business done by a deli in Buckingham 9. Which of Adam Smith’s four maxims describes the idea that the rich should pay a higher tax percentage than the poor? 10. What are the three reasons governments tax?

8. 1.This type of unemployment occurs as economic activity slows down and recessions occur 1.Cyclical 2.A decline in economic activity over a period of 6 months (2 quarters) is known as 1.Recession 3.Come December 26 th, Rudolph the Red-Nosed Reindeer will be out of a job. What type of unemployment will our “bright” friend be going through? 1.Seasonal 4. Johnny receives a 4% increase in pay for the year…unfortunately…the inflation rate for that year is 6%! What is most likely going to happen to Johnny’s financial situation for that year??? A. More income, thus more spending power! B. More income, but less purchasing power C. Cost of living and purchasing power will decrease D. Cost of living and purchasing power will increase

9. 5.This type of unemployment is due to normal turnover in the job market as people seek new jobs or are in between jobs 5.Frictional 6.A tax put on a product to discourage consumption is known as? 5.Sin Tax 7.Sales tax has what type of tax structure? 5.Regressive 8. Which would best describe Macroeconomics? A. The sale of cookies in the CB East cafeteria B. The taxes Buckingham residents pay to fund CBSD C. The national budget D. The business done by a deli in Buckingham 9. Which of Adam Smith’s four maxims describes the idea that the rich should pay a higher tax percentage than the poor? equity 10. What are the three reasons governments tax? Pay for security, employees, and government programs/services