Questions from General Economics

Q: Disagreements between the Congress and the president about the federal budget occur

Disagreements between the Congress and the president about the federal budget occur frequently. When they cannot agree on a budget but want to keep the government running, they a) use the president’s...

Q: The U.S. budget a) is required to

The U.S. budget a) is required to be balanced. b) is never truly balanced, but historically surpluses are more common than deficits. c) is never truly balanced but historically surpluses are less...

Q: In which type of mortgage do you neither build nor lose equity

In which type of mortgage do you neither build nor lose equity? a) A zero-down mortgage b) A traditional constant-payment, zero-down mortgage c) An interest-only mortgage d) A negative-amortizatio...

Q: The impact of slowing economic growth over a long period of time

The impact of slowing economic growth over a long period of time is a) negligible. b) the lost growth times the number of years. c) substantial because of the exponential aspect of growth.

Q: Which of the following would immediately be more valuable for most people

Which of the following would immediately be more valuable for most people? a) A $1,000 increase in the child credit b) A decrease in the degree to which brackets are inflation-indexed c) An indexi...

Q: The proximate cause of the Greek problem was a) vast

The proximate cause of the Greek problem was a) vast overspending during the previous decade. b) lax tax collections during the previous decade. c) a burst housing bubble. d) Both a) and b).

Q: If you became convinced that marijuana was neither addictive nor contributed to

If you became convinced that marijuana was neither addictive nor contributed to externalities, then banning it creates a) a social benefit without social cost. b) what economists call deadweight los...

Q: The government, in the form of Medicare, Medicaid and the

The government, in the form of Medicare, Medicaid and the Children’s Health Insurance Program pay for ____ of health care costs. a) less than 10 percent b) slightly less than half c) about 75 perce...

Q: When a program like Medicaid is introduced, the market demand curve

When a program like Medicaid is introduced, the market demand curve for health care will a) increase and flatten. b) increase and become more steep. c) decrease and flatten. d) decrease and become...

Q: Orphan drug laws were created because the motivation to invent drugs for

Orphan drug laws were created because the motivation to invent drugs for these diseases was a) much greater than normal because prices could be high. b) much less than normal because prices would be...