Economics: Using the data shown in the table below, the debt-to-GDP

Economics: Using the data shown in the table below, the debt-to-GDP

Subject: Economics    / General Economics
Due on: 03/23/2017
Question

Question 5

Using the data shown in the table below, the debt-to-GDP ratio for Greece in 2001 was _______ and the debt-to-GDP ratio for Greece in 2011 was _________.
2001    2011
Debt    GDP    Debt    GDP
$134.6 billion    $129.8 billion    $493.19 billion    $289.6 billion
170.3%; 103.7%
103.7%; 170.3%
96.4%; 58.7%
58.7%; 96.4%
1.037%; 1.703%

Flag this QuestionQuestion 6 You have been hired as an economic advisor for a politician running for national office. The politician, at a recent campaign event, said that corporations are paying too much in taxes and are funding most of the federal government’s operations. When you speak to the politician after the event, what would you say?
“I can’t believe you said that! Everyone knows that taxes on cigarettes and alcohol (excise taxes) represent the largest source of tax revenue for the federal government.”
“Good job! You will win this election based on your sound economic knowledge.”
“We have a great deal of work to do. On the news tonight I predict there will be an expert correcting you and questioning why anyone would vote for you. Individuals, through income tax and social insurance taxes, provide the bulk of government revenue.”
“So close! Maybe no one will catch your error. Corporate and estate taxes are about equal and are tied for the largest sources of tax revenue.”
“Everyone knows that taxes on inheritances are the largest source of tax revenue. Perhaps we should rethink our election strategy.”

Flag this QuestionQuestion 7 Which of the following statements are true about deficits versus debt?
The current year deficit can be subtracted from, the current year debt to find the previous year’s deficit.
The sum of all debts equal the deficit.
The sum of all deficits equal the debt.
If in year 1 the debt is $1 million and the deficit in year 2 in $200,000, the debt in year 2 is $800,000
If in year 4 the deficit is $2 million and in year 3 the debt is $50 million, the debt in year 4 is $52 million.

Flag this QuestionQuestion 8 Which of the following statements about Medicare and Social Security are false? Select all that apply.
Spending on Medicare and Social Security has increased dramatically as the population has gotten older.
Medicare and Social Security represent a mandatory outlay.
Medicare and Social Security represent about 10% of total government spending.
Medicare is a program that provides health care to the poor and to the elderly.
Social Security and Medicare are social insurance programs.

Flag this QuestionQuestion 9 Which of the following represents a mandatory government outlay? Select all that apply.
an interest payment made to holders of government debt
a payment made to a construction worker who was hired to pave a road
the payment of health care expenses for those participating in the Medicare program (health care for the poor)
rental assistance payments made to those who are poor
the purchase of a new tank to replace a tank destroyed during a war

Flag this QuestionQuestion 10 Which of the following would be considered a transfer payment by the government?
The government spends money to replace all computers in government offices.
The government gives every citizen $1,000 with the hope that the individual will buy a new computer.
The government helps senior citizens cover their monthly expenses with a cash payment.
The government directly pays the health care expenses of senior citizens.
The government hires a construction crew to rebuild a bridge across a river.