PFL UNIT 3 (CBA2) Quizs

Which tax is considered regressive?

• Sales tax

• Federal income tax

• Corporate tax

• Inheritance tax

Medicare provides insurance for:

• Individuals under 65

• Only low-income families

• Individuals aged 65 and older

• All citizens

How does a decrease in government spending affect the economy?

• It stimulates economic growth

• It increases inflation

• It can lead to increased unemployment

• It has no significant effect

Inflation refers to:

• A change in the price level of all goods and services

• An increase in GDP

• A decrease in consumer spending

• A decrease in unemployment.

In a pure market system, the main decision-makers are:

• Government officials

• Central planners

• Economic advisors

• Producers and consumers

In a command economy, what typically happens to prices?

• They fluctuate based on demand

• They are set by the government

• They are determined by consumers

• They are non-existent

Economic systems are primarily concerned with:

• Wealth distribution

• Cultural impacts

• Distribution of goods and services

• Global trade relations

Which of the following best describes Democratic Socialism?

• Balance between market power and government intervention

• Complete government control

• Pure market economy

• High levels of income inequality

What is the purpose of taxes?

• Mandatory payments for government services

• Personal wealth accumulation

• To reduce personal income

• To stimulate competition

To be classified as unemployed, a person must:

• Have a job but want a new one

• Not be working and have looked for a job within the past 4 weeks

• Be receiving unemployment benefits

• Have worked less than 10 hours in the past week.