Can someone check my homework answers? Can not find these topics in my book; I read the chapter several times. Thank you
1.Income taxes create a difference between the wage rate paid by companies and received by workers. These taxes __________ both employment and potential GDP.
A. do not affect
B. lower
C. encourage, but may not change
D. increase
my answer D
2. On the outlays side of the budget, how are Social Security benefits, Medicare and Medicaid benefits, unemployment benefits, and other cash benefits to individuals and businesses labeled?
A. expenditure on goods and services
B. transfer payments
C. debt interest
D. indirect taxes
my guess A
3.In the long run, an increase in the supply of bank loans is matched by a __________ in the price level and the quantity of real loans is __________.
A. rise; unchanged
B. rise; increased
C. fall; unchanged
D. fall; decrease
my guess A
I can definitely help check your homework answers! Let's go through each question one by one and determine the correct answers.
1. Income taxes create a difference between the wage rate paid by companies and received by workers. These taxes __________ both employment and potential GDP.
A. do not affect
B. lower
C. encourage, but may not change
D. increase
To determine the correct answer, let's think about the impact of income taxes on employment and potential GDP. Income taxes reduce the amount of income that workers can take home after taxes. This reduction in income may discourage people from seeking employment, as they will be receiving less money for their work. Additionally, when workers have less income, they have less to spend, which can lower consumer spending and potentially decrease economic activity and overall GDP.
With this information, it seems that the correct answer is B. Lower, as income taxes reduce employment and potential GDP.
2. On the outlays side of the budget, how are Social Security benefits, Medicare and Medicaid benefits, unemployment benefits, and other cash benefits to individuals and businesses labeled?
A. expenditure on goods and services
B. transfer payments
C. debt interest
D. indirect taxes
To find the answer to this question, we need to know how these benefits are categorized within the budget. Social Security benefits, Medicare and Medicaid benefits, unemployment benefits, and other cash benefits to individuals and businesses are all payments made by the government to individuals or businesses. These payments aren't expenditures on goods and services, debt interest, or indirect taxes.
Based on this information, the correct answer is B. Transfer payments, as these benefits are categorized as transfer payments within the budget.
3. In the long run, an increase in the supply of bank loans is matched by a __________ in the price level and the quantity of real loans is __________.
A. rise; unchanged
B. rise; increased
C. fall; unchanged
D. fall; decrease
To determine the correct answer, let's think about the relationship between the supply of bank loans and the price level. An increase in the supply of bank loans usually leads to a decrease in their interest rates. Lower interest rates can encourage borrowing, which can increase spending and economic activity. If more loans are being taken out, it can lead to an increase in the quantity of real loans.
With this information, the correct answer is B. Rise; increased, as an increase in the supply of bank loans is typically matched by a rise in the price level and an increase in the quantity of real loans.
I hope this helps! Let me know if you have any other questions.