Economics Unit 3 Test Questions with Correct Answers 2024

Economics Unit 3 Test Questions with
Correct Answers 2024

1. Change in overall spending caused by a change in investment spending -
ANS ✔multiplier



2. Benefit to eligible individuals - ANS ✔entitlement



3. Policies based on demand-side economics - ANS ✔Keynesian economics



4. Government spending and revenue collection to manage the economy -
ANS ✔fiscal policy



5. Change in investment spending caused by a change in overall spending -
ANS ✔accelerator



6. Annual budget in which expenditures equal revenues - ANS ✔balanced
budget



7. Federal income tax is collected by employers - ANS ✔tax withholding

, 8. Imposes a higher tax on the more wealthy - ANS ✔able to pay principle



9. The part of the economy made up by individuals and business - ANS
✔private taxer



10.Proportional tax on individual income - ANS ✔flat tax



11.Payments for which the government receives neither good nor services in
return - ANS ✔transfer payments



12.The total amount borrowed from investors to finance the government's
deficit spending - ANS ✔national debt



13.The final burden of a tax - ANS ✔incidence of a tax



14.Tax on the value added at every stage of the production process - ANS
✔value added taxes