ECONOMICS TODAY 20TH EDITION BY ROGER
LE MILLER ACTUAL EXAM PAPER 2026
QUESTIONS SOLUTIONS GRADED A+
◉ Suppose there was a debate regarding how to spend $1 billion in
newly found revenues in the budget. Suppose the centrist Democrat
suggests an increase to infrastructure spending. Suppose the
centrist Republican suggests an increase in cyber-defense spending.
The Democrat says that the extra infrastructure spending will
decrease travel times and be the most valuable. The Republican is
arguing that, on average, cyber-security is worth the money, so more
is better. What is going on here?.
Answer: Only the Democrat is using marginal analysis.
◉ A country that is limiting imports of a good by requiring a lengthy
inspection process is using.
Answer: non-tariff regulatory barriers.
◉ Suppose there was a debate regarding student financial aid
budgets and the Democrat was arguing for a budget increase from
$40 billion to $50 billion and the Republican was arguing for the
budget to increase to only $41 billion. Further, suppose college costs
were project to rise 10%, even with the same number of students.
The Democrat accuses the Republican of proposing a cut to
,education while, the Republican insists his plan increases education
spending. What is going on here?.
Answer: The Republican is cutting education only if you use current
services budgeting.
◉ TARP was.
Answer: the name given to the bank bailouts.
◉ If it takes one country one unit of labor to produce either a
computer or a TV, but it takes the other country two units of labor to
produce a computer and only one to produce a TV, then the first
country has.
Answer: an absolute and comparative advantage in production of
computers.
◉ Trade sanctions were effective in removing Iraq from Kuwait after
its 1990 invasion..
Answer: False
◉ The elements of the stimulus package adopted in 2009 that
allowed states to pay Medicaid providers despite having exhausted
their funds, should be considered.
Answer: non-discretionary fiscal policy.
, ◉ Suppose there was a debate regarding how to spend $1 billion in
newly found revenues in the budget. Suppose the centrist Democrat
suggests an increase to infrastructure spending. Suppose the
centrist Republican suggests an increase in cyber-defense spending.
Each is arguing that their plan will get the most good for the money.
What is going on here?.
Answer: Both are employing marginal analysis, just from different
perspectives.
◉ Prior to the recession of 2007-2009,.
Answer: both revolving and non-revolving debt were rising rapidly.
◉ The efforts to reduce the deficit in 2011 can be best thought of as
using.
Answer: None of these options are correct.
◉ The stimulus package adopted in 2009 by newly-elected President
Obama included.
Answer: both discretionary and non-discretionary fiscal policy
programs.
◉ Suppose there was a debate regarding how to spend $1 billion in
newly found revenues in the budget. Suppose the centrist Democrat
suggests an increase to infrastructure spending. Suppose the
centrist Republican suggests an increase in cyber-defense spending.
LE MILLER ACTUAL EXAM PAPER 2026
QUESTIONS SOLUTIONS GRADED A+
◉ Suppose there was a debate regarding how to spend $1 billion in
newly found revenues in the budget. Suppose the centrist Democrat
suggests an increase to infrastructure spending. Suppose the
centrist Republican suggests an increase in cyber-defense spending.
The Democrat says that the extra infrastructure spending will
decrease travel times and be the most valuable. The Republican is
arguing that, on average, cyber-security is worth the money, so more
is better. What is going on here?.
Answer: Only the Democrat is using marginal analysis.
◉ A country that is limiting imports of a good by requiring a lengthy
inspection process is using.
Answer: non-tariff regulatory barriers.
◉ Suppose there was a debate regarding student financial aid
budgets and the Democrat was arguing for a budget increase from
$40 billion to $50 billion and the Republican was arguing for the
budget to increase to only $41 billion. Further, suppose college costs
were project to rise 10%, even with the same number of students.
The Democrat accuses the Republican of proposing a cut to
,education while, the Republican insists his plan increases education
spending. What is going on here?.
Answer: The Republican is cutting education only if you use current
services budgeting.
◉ TARP was.
Answer: the name given to the bank bailouts.
◉ If it takes one country one unit of labor to produce either a
computer or a TV, but it takes the other country two units of labor to
produce a computer and only one to produce a TV, then the first
country has.
Answer: an absolute and comparative advantage in production of
computers.
◉ Trade sanctions were effective in removing Iraq from Kuwait after
its 1990 invasion..
Answer: False
◉ The elements of the stimulus package adopted in 2009 that
allowed states to pay Medicaid providers despite having exhausted
their funds, should be considered.
Answer: non-discretionary fiscal policy.
, ◉ Suppose there was a debate regarding how to spend $1 billion in
newly found revenues in the budget. Suppose the centrist Democrat
suggests an increase to infrastructure spending. Suppose the
centrist Republican suggests an increase in cyber-defense spending.
Each is arguing that their plan will get the most good for the money.
What is going on here?.
Answer: Both are employing marginal analysis, just from different
perspectives.
◉ Prior to the recession of 2007-2009,.
Answer: both revolving and non-revolving debt were rising rapidly.
◉ The efforts to reduce the deficit in 2011 can be best thought of as
using.
Answer: None of these options are correct.
◉ The stimulus package adopted in 2009 by newly-elected President
Obama included.
Answer: both discretionary and non-discretionary fiscal policy
programs.
◉ Suppose there was a debate regarding how to spend $1 billion in
newly found revenues in the budget. Suppose the centrist Democrat
suggests an increase to infrastructure spending. Suppose the
centrist Republican suggests an increase in cyber-defense spending.
