Economics Unit 3 Test Questions with
Correct Answers 2024
1. Change in overall spending caused by a change in investment spending -
ANS ✔multiplier
2. Benefit to eligible individuals - ANS ✔entitlement
3. Policies based on demand-side economics - ANS ✔Keynesian economics
4. Government spending and revenue collection to manage the economy -
ANS ✔fiscal policy
5. Change in investment spending caused by a change in overall spending -
ANS ✔accelerator
6. Annual budget in which expenditures equal revenues - ANS ✔balanced
budget
7. Federal income tax is collected by employers - ANS ✔tax withholding
, 8. Imposes a higher tax on the more wealthy - ANS ✔able to pay principle
9. The part of the economy made up by individuals and business - ANS
✔private taxer
10.Proportional tax on individual income - ANS ✔flat tax
11.Payments for which the government receives neither good nor services in
return - ANS ✔transfer payments
12.The total amount borrowed from investors to finance the government's
deficit spending - ANS ✔national debt
13.The final burden of a tax - ANS ✔incidence of a tax
14.Tax on the value added at every stage of the production process - ANS
✔value added taxes
Correct Answers 2024
1. Change in overall spending caused by a change in investment spending -
ANS ✔multiplier
2. Benefit to eligible individuals - ANS ✔entitlement
3. Policies based on demand-side economics - ANS ✔Keynesian economics
4. Government spending and revenue collection to manage the economy -
ANS ✔fiscal policy
5. Change in investment spending caused by a change in overall spending -
ANS ✔accelerator
6. Annual budget in which expenditures equal revenues - ANS ✔balanced
budget
7. Federal income tax is collected by employers - ANS ✔tax withholding
, 8. Imposes a higher tax on the more wealthy - ANS ✔able to pay principle
9. The part of the economy made up by individuals and business - ANS
✔private taxer
10.Proportional tax on individual income - ANS ✔flat tax
11.Payments for which the government receives neither good nor services in
return - ANS ✔transfer payments
12.The total amount borrowed from investors to finance the government's
deficit spending - ANS ✔national debt
13.The final burden of a tax - ANS ✔incidence of a tax
14.Tax on the value added at every stage of the production process - ANS
✔value added taxes
