Exam 2 Quizzes Answers Flashcards
To help me prepare for the second exam
Economists believe that politicians act in their own self interest. We call them _______ because they do that.
rational actors
Economists believe that government bureaucrats do not respond to incentives, unlike private sector employees who do.
False
Rational Ignorance theory says that, because our individual vote does not matter, voters generally don’t benefit by spending the time to inform themselves fully about candidates for office.
True
Economists believe that politicians’ primary concern is maximizing
the chance of getting elected or reelected
Rational Ignorance tells us that politicians look for issues that benefit _______, whose costs are ________
few, shared among many
Because of Rational Ignorance, single issue voters are _____.
more likely
If we require 100% agreement to create a law, it let’s the minority control the majority. In our current system where we normally require just 50% + 1 vote, the majority can do bad things to the minority. There is no voting system that gives the majority control while protecting completely the minority.
True
To protect us from tyranny and/or the domination of the few, the Founding Fathers:
created a large Congress, and a weak president
The median voter model tells us that most presidents will move toward the center of all voters in the country after being elected.
True
When politicians trade votes (you vote for my bill and I’ll vote for yours), it is called:
log rolling
Money that has value because of an order by the government is called ______ money
fiat
An increase in the money supply should _____ interest rates.
decrease
In US history,
deer and tobacco leaves were used as money
states printed their own money
banks were allowed to print money
Correct Answer
all of the above
Most of the money in the country is actually created by banks when they make loans.
True
The Federal Reserve System is intended to be independent of Congress and the President, because it is believed that countries with independent central banks have lower inflation rates over time.
True
The McCulloch v. Maryland decision said that:
states may not tax the federal government
In Hepburn v. Griswold, the Supreme Court said fiat money was a violation of the Constitution. Two years later, the Supreme Court reversed itself and said it was not.
True
Which of the following is true about the Wizard of Oz?
Dorothy’s slippers are made of silver in the book
The Cross of Gold speech
supported workers over Wall Street
The Constitution says states are forbidden to print their own money.
True
A system that has more than one level of governments is called a ______ system.
Federal
There are about _______ governments in the USA
70,000
The taxes available to the US government in the Constitution when it was written were tariffs and excise taxes, and they had to have uniform rates across the country.
True
UNLV is located in
Paradise
A tax that is designated for a specific purpose is called a(n) ______ tax
earmarked
The national excise taxes used in Europe and many other countries are called:
VAT
When someone legally manages to reduce their taxes, we call this tax
avoidance
Economists believe that a sales tax
is split partly to the consumer and partly to the business
The personal income tax system in the US is intended to be
The personal income tax system in the US is intended to be
Corporate dividends are often taxed twice, once as profits under the corporate profits tax, and once as income under the personal income tax.
True