PUP 3002 TEST 2 – Questions With Appropriate
Solutions
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Those who are most willing to get insurance are those who receive the
most benefit.
Choose an answer
1 What is economic growth? 2 Adverse Selection refers to...
3 Monetary policy is carried out by... 4 Inflation is...
Don't know?
Terms in this set (112)
What is economic The increase in the market value of the goods and
growth? services produced by an economy.
A recession is... A negative growth rate.
,Economic growth is The percent rate of increase in growth domestic
measured by... product (adjusted for inflation) or 'real GDP'
Ratio that measures the proportion of the country's
The employment rate is...
working-age population that is employed.
Inflation is... The purchasing power of money.
Inflation is often caused Increases in the production of money or excess
by... money in the economy.
Balance of trade Imports and exports
involves...
Positive balances in trade A country is less dependent on others for products
are desirable because... services.
We should rarely intervene;
The Classical, or Laissez-
Supply and demand are natural regulatory tools
faire model states that...
The economy regulates itself.
- Encourages deficit spending
- Government spending as a means by which to
curb recessions (especially in the creation of public
Keynesian approach...
sector jobs)
- Argues that austerity increases the burden on
citizens and prolongs recessions
- Monetary Policy
How do we 'manage' the
- Fiscal Policy
economy?
- Regulation
Monetary policy Managing the supply of money.
involves...
Monetary policy is The Federal Reserve
carried out by... Main job: setting the discount rate
Fiscal policy involves... Taxing and Spending
Fiscal policy is carried The President and Congress
out by...
Everyone, regardless of income, pays the same
In a proportional tax
fraction of income in taxes (Russia, Saudi Arabia,
system....
Ukraine, Estonia)
, Poor entities pay a higher fraction of their income in
In a regressive tax
taxes than do higher-income entities (Ex: Sales Tax;
system...
Sin Taxes)
Lower-income entities pay a lower fraction of their
In a progressive tax
income in taxes than do higher-income entities. (US,
system...
UK, France)
Government intervention in the decisions that firms
Regulation involves...
make or in market outcomes.
- Decisions should be made without individual
concern or knowledge of their position in society.
Rawles (1971) "Veil of
- Maximize the resources—benefits, rights, and so
Ignorance"
on—available to the least well off in society so as to
ensure a floor for the poorest in society.
Income Inequality has to How evenly income is distributed across citizens of
do with... a population.
If income inequality is The majority of wealth is owned by a small
high... proportion of citizens.
If income inequality is Wealth is evenly distributed across population.
low...
Income inequality is High
(high/low) in the US??
- A system of compulsory contribution to provide
government assistance in sickness, unemployment,
Social insurance is... etc.
- Receiving benefits is conditional on payment into
social insurance programs.
Social insurance is Positively
generally viewed
somewhat
(positively/negatively) by
the public
Taking from those who have more and giving it to
Redistribution involves...
those that have less.
Solutions
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Those who are most willing to get insurance are those who receive the
most benefit.
Choose an answer
1 What is economic growth? 2 Adverse Selection refers to...
3 Monetary policy is carried out by... 4 Inflation is...
Don't know?
Terms in this set (112)
What is economic The increase in the market value of the goods and
growth? services produced by an economy.
A recession is... A negative growth rate.
,Economic growth is The percent rate of increase in growth domestic
measured by... product (adjusted for inflation) or 'real GDP'
Ratio that measures the proportion of the country's
The employment rate is...
working-age population that is employed.
Inflation is... The purchasing power of money.
Inflation is often caused Increases in the production of money or excess
by... money in the economy.
Balance of trade Imports and exports
involves...
Positive balances in trade A country is less dependent on others for products
are desirable because... services.
We should rarely intervene;
The Classical, or Laissez-
Supply and demand are natural regulatory tools
faire model states that...
The economy regulates itself.
- Encourages deficit spending
- Government spending as a means by which to
curb recessions (especially in the creation of public
Keynesian approach...
sector jobs)
- Argues that austerity increases the burden on
citizens and prolongs recessions
- Monetary Policy
How do we 'manage' the
- Fiscal Policy
economy?
- Regulation
Monetary policy Managing the supply of money.
involves...
Monetary policy is The Federal Reserve
carried out by... Main job: setting the discount rate
Fiscal policy involves... Taxing and Spending
Fiscal policy is carried The President and Congress
out by...
Everyone, regardless of income, pays the same
In a proportional tax
fraction of income in taxes (Russia, Saudi Arabia,
system....
Ukraine, Estonia)
, Poor entities pay a higher fraction of their income in
In a regressive tax
taxes than do higher-income entities (Ex: Sales Tax;
system...
Sin Taxes)
Lower-income entities pay a lower fraction of their
In a progressive tax
income in taxes than do higher-income entities. (US,
system...
UK, France)
Government intervention in the decisions that firms
Regulation involves...
make or in market outcomes.
- Decisions should be made without individual
concern or knowledge of their position in society.
Rawles (1971) "Veil of
- Maximize the resources—benefits, rights, and so
Ignorance"
on—available to the least well off in society so as to
ensure a floor for the poorest in society.
Income Inequality has to How evenly income is distributed across citizens of
do with... a population.
If income inequality is The majority of wealth is owned by a small
high... proportion of citizens.
If income inequality is Wealth is evenly distributed across population.
low...
Income inequality is High
(high/low) in the US??
- A system of compulsory contribution to provide
government assistance in sickness, unemployment,
Social insurance is... etc.
- Receiving benefits is conditional on payment into
social insurance programs.
Social insurance is Positively
generally viewed
somewhat
(positively/negatively) by
the public
Taking from those who have more and giving it to
Redistribution involves...
those that have less.
