The U.S. Economy: Private and Public Sectors

What does the functional distribution of income indicate?

Based on the 2007 data for the functional distribution of U.S. income, what percentage of income was received as wages and salaries?

According to the personal distribution of income data for 2006, what percentage of total personal income did the richest 20 percent of households receive?

What is the economic definition of 'saving'?

In 2007, approximately what percentage of consumer expenditures was spent on services?

Which of the following best defines a 'firm' in an economic context?

What legal form of business accounts for the highest percentage of total sales in the U.S.?

What is meant by the concept of 'limited liability' for corporate owners?

What is the principal-agent problem in the context of a corporation?

Which of the following is NOT one of the economic functions of government discussed in the chapter?

What is an externality?

How does the government typically correct for an overallocation of resources caused by negative externalities?

Which two characteristics define a public good?

What is the 'free-rider problem'?

What is the key difference between government purchases and transfer payments?

What are the two largest categories of Federal government expenditures, according to the 2007 data?

What are the two primary sources of Federal tax revenue, which together accounted for 79 percent of the total in 2007?

A progressive tax is defined as one where people with higher incomes pay what?

For a married couple in 2008 with a taxable income of $80,000, what was their average tax rate?

What is the primary source of tax revenue for state governments?

What is the main expenditure category for local governments?

The problem that arises when the interests of corporate executives and stockholders do not align is known as what?

Which of the following government actions is an example of 'market intervention' to redistribute income?

Education is considered to have positive externalities because it:

What is a key feature of a sole proprietorship?

In the circular flow diagram that includes the government, how are government purchases of goods and services like military hardware represented?

How much did households pay in personal taxes in 2007, as a percentage of their total income?

What is the primary role of payroll taxes in the U.S. Federal tax system?

A firm that is organized with several plants performing much the same function, such as the multiple bottling plants of Coca-Cola, is described as being what?

What is the difference between a stock and a bond issued by a corporation?

What is considered a quasi-public good?

In the context of promoting stability, when does the government try to increase its own spending or lower tax rates?

Total government spending (purchases plus transfers) was what percentage of U.S. output in 2007?

What is the primary source of revenue for local governments in the U.S.?

In 2007, what was the total amount of personal consumption expenditures by U.S. households?

What is the defining characteristic of a durable good?

Which of these is an example of a transfer payment?

What does a marginal tax rate represent?

In 2007, what was the corporate income tax rate for almost all corporations?

What is the primary reason the U.S. is referred to as a 'service-oriented economy'?

What was the total value of sales for Wal-Mart in 2007?

A natural monopoly is an industry where:

How many households were there in the U.S. economy at the time the chapter was written?

In the circular flow model, what do 'net taxes' represent?

What was the pension portion of the Social Security program in 2007?

What percentage of firms in the U.S. are sole proprietorships?

According to the 2008 Federal tax data for a married couple, what was the marginal tax rate on taxable income between $16,051 and $65,100?

Which of the following is a primary reason for households to save?

What percentage of state government tax revenue comes from sales and excise taxes?

Which of the following best describes the government's role in 'providing the legal structure' for a market economy?