macro exam 1 review

macro exam 1 review - 1. Suppose that the United States...

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1. Suppose that the United States decides to allocate more resources to consumer goods than to capital goods relative to China. In terms of the simplified production possibilities model, China will achieve a great degree of: A) Full employment B) Price stability C) Economic growth D) Technical efficiency E) Excess resource utilization 2. Which of the following is a tax on income? A) Corporate profits tax B) Estate tax C) Sales tax D) Excise tax E) Social security tax 3. Taxation according to the ability to pay principle is best illustrated by the: A) Gasoline tax B) Sales tax C) Liquor tax D) Corporate income tax E) Property tax 4. The largest single expenditure category for the federal government is: A) Interest B) National defense C) Income security D) Health and education E) Other 5. The average tax rate is calculated by: A) Adding the marginal tax rate to the corporate tax rate B) Dividing the total personal income tax by the total taxable income C) Dividing the change in total personal income tax by the change in total taxable income D) Dividing total taxable income by total personal income tax E) Dividing the change in total table income by the change in total personal income tax
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This note was uploaded on 12/28/2011 for the course 220 103 taught by Professor Sheflin during the Spring '09 term at Rutgers.

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macro exam 1 review - 1. Suppose that the United States...

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