Economics Test Prep

Front 1

In the middle of this decade, the top______ percent of the households made more than 88,030

Back 1

20

Front 2

_______distribution of income relates to how income is distributed according to the factores of production (labor, land, capital, and entrpreneurship).

Back 2

Functional

Front 3

In the Private Sector, there are many choices to be made by Business managers regarding which projects to borrow for and which projects to invest in. These choices often contain a great deal of ________ as well as the potential for benifits (profits)

Back 3

a+b
Risk(the possibility of costs being more than originally perceived)
Uncertainty(the possibility of benifits being less than originally percieved)

Front 4

When positive spillovers exist, government can provide _____such as in agriculture and public education.

Back 4

Subsidies

Front 5

A number of factors account for the recent increase in the inequality of incomes, but the increased need for workers with strong __________ skills is important in explaining some of this change.

Back 5

Technical

Front 6

Using the table below, answer the question that follows the table:



Income Tax



$10,000 $1,000

20,000 4,000

30,000 9,000



The “marginal tax rate” in going from $10, 000 to $20,000 of income is _________.

Back 6

30%

Front 7

There are many reasons why government spending (on a percentage basis) has __________ over the last 100 years including growth in urban areas that require more government services and the concept of equal opportunity.

Back 7

Increased

Front 8

The __________ Sector of an Economy is the resource allocation by government including city, county, state, and federal areas

Back 8

Public

Front 9

A _________ tax collects from individuals with lower income at a higher rate than individuals with higher income.

Back 9

Regressive

Front 10

A negative externality is when production or consumption inflicts costs on ___________.

Back 10

A Third Party