Exam Three Flashcards
Wealth in the United States is distributed more unequally than income. (T/F)
True
The United States has the lowest Gini ratio of any industrialized nation. (T/F)
False
The United States Congress is an example of a core sphere organization. (T/F)
False (exam says True)
The securities and Exchange Commission, which regulates the sale of stocks and bonds, is an example of a business sphere organization. (T/F)
False
A tax system that varies the overall percentage tax rate based on a household’s income level is called proportional. (T/F)
False
Suppose that an individual making $100,000 per year pays $30,000 in total taxes while a person making $30,000 per year pays $5,000 in total taxes. This is an example of a progressive tax system. (T/F)
True
Net investment can be positive or negative. (T/F)
True
All production is an example of investment. (T/F)
False
An example of a stock is the quantity of money you have in your pockets. (T/F)
True
Fringe benefits, such as employer-paid health care, are considered a type of labor income. (T/F)
True
If all income in a country was equally distributed, what would its Gini ratio be?
Zero
The conversion of resources into goods and services is known as…
production
What is the difference between a stock and a flow?
A flow is measured over time while a stock is measured at a point in time
Which one of the following is an example of human capital?
Your knowledge of economics
Which one of the following is an example of social capital?
The trust you have in other people
