Question 1 2 points Save As a percentage of GDP, the U.S. national debt held by the public is larger than in any major European country. True False Question 2 2 points Save Interest on the national debt is an insignificant part of the U.S. federal budget. True False Question 3 2 points Save The burden of a tax on a consumer good with very inelastic demand is usually shifted to the producer shared equally by the producer zero, since consumers do not decrease their purchases of the good shifted to the final consumer Question 4 2 points Save A national sales tax would be considered regressive in relation to income. True False Question 5 2 points Save A good tax must possess the characteristic of reasonability. True False Question 6 2 points Save The value of an object on which a tax is levied is known as the tax rate tax impact tax base tax incidence Question 7 2 points Save The size of the national debt relative to GDP will not be reduced by paying off some of the debt lowering the federal deficit having the GDP grow faster than the debt having creditors forgive part of the debt Question 8 2 points Save The equality-of-sacrifice doctrine of taxation is based on the increasing marginal utility of income increasing marginal utility of government transfer payments diminishing marginal utility of income diminishing marginal utility of government transfer payments Question 9 2 points Save A deficit budget adds to the national debt. True False Question 10 2 points Save Reducing the national debt would increase the money supply. True False Question 11 2 points Save The actual deficit is a poor measure of fiscal policy. True False Question 12 2 points Save When the government uses tax revenue to pay off portions of the national debt, total purchasing power in the economy increases decreases is not affected...
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