Question

The income transferred by the government from a citizen who is earning income to another citizen is referred to as:

fiscal spending.

transfer payment.

budgetary allowance.

internal debt.

taxation.

Assume that the U.S. labor force consists of 185 million workers and that 17.5 million are officially unemployed. Calculate the unemployment rate.

7.5 percent

11.4 percent

9.5 percent

10.0 percent

10.8 percent

A price index is a measure of the average level of prices in an economy.

True

False

An excess demand for money will result in all the following, except:

a fall in consumption spending.

a rise in investment spending.

a fall in bond prices.

an excess supply of bonds.

a fall in equilibrium real GDP.

A(n) _____ is an indirect tax imposed on each sale at each stage of production.

sales tax

value-added tax

excise duty

ad-valorem tax

personal tax

Answer 1

Ans: The income transferred by the government from a citizen who is earning income to another citizen is referred to as  transfer payment.

Ans: The unemployment rate is 9.5 percent.

Explanation:

Labor force = 185 million workers

Officially unemployed = 17.5 million

Unemployment rate = (Total number of unemployed / Labor force ) *100

= (17.5 / 185 ) *100

= 0.0945 *100

= 9.45%

Ans: True , A price index is a measure of the average level of prices in an economy.

Ans:  An excess demand for money will result in all the following, except a rise in investment spending.

Ans: A value - added tax is an indirect tax imposed on each sale at each stage of production.