Showing posts with label essay shark. Show all posts
Showing posts with label essay shark. Show all posts

Wednesday, September 25, 2019

Sample Paper: MANS 571 - Individual moods and emotions in the workplace






Individual moods and emotions in the workplace
Name

MAN571 Organizational behavior

Date






Introduction
Emotions and moods play a big role on how employees communicate with other in the workplace. Emotions in the workplace are essential indications of a positive or negative job environment. Positive emotions can increase the worker motivation and performance, while negative emotions can cause stress and high turnover. This in turn will affect the whole organization either directly or indirectly. Positive moods enable employees to enhance their productivity at the workplace. However, negative emotions such as anger, hostility and stress can impact negatively on the productivity of the employees. Both types of emotions are contagious in the work place, which makes it even more important for managers to have an ability to read employee emotions. 
Emotional contagion is a way that the emotions of one employee are transferred to another employee via nonverbal channels. Managers need to harness positive emotions or eliminate negative emotions at work in order to maintain a healthy work environment.  How positive and negative emotions can influence employees and their productivity at work.
According to Brief &Weiss (2002), emotions are usually intense and occur due to specific events and can affect the way we think. Moods on the other hand are less intense and are not enhanced by any specific stimulus.




The purpose of this reflective thinking assignment is to examine the following:
·         Individual moods and emotions in the workplace and how they affect the employees
·         Describe different personality tests
·         Emotional intelligence

Individual moods and emotions in the workplace
It is normal for employees to express emotions. However, it should be noted that negative emotions can be infectious and in turn spread from one employee to another. This can significantly affect interpersonal communication in the organization.
Emotions can sometimes cause a person to be irrational. For instance, an employee who suffers severe head injuries which may affect his/her brain causing him/her to be emotionless would result in such an employee not being able to experience any reason, hence becoming irrational. In order to determine how an individual expresses emotions at work, it will be important to put into consideration how such an individual experiences work from a personal point of view so as to understand meaning to those emotions (Weiss & Rupp, 2011)
The following are the sources of mood and emotions in the workplace;
·         Stress
Stress is body's way of responding to any kind of demand or tension .It can be caused by both good and bad experiences in life .Stress is the major cause of negative feelings at work, for instance, too much work overloads , difficult colleagues or customers and demanding bosses/supervisors can lead to negative feelings (Kanner, Schaefer & Lazarus, 1984)
·         Personality
A person’s temperament determines their moods and emotions. For instance, extroverts typically express their emotions for all to see and express, very outgoing and frequently show positive feelings of excitement, happiness towards people around them .
·         Social activities
Interpersonal interactions on social occasions and events contribute to emotions and moods. Those interactions which are positive translate to positive feelings and vice-versa
·         Weather
Research has shown that weather thought to have effects on mood. Individuals have been known to express negative feelings on dark, stormy/rainy days and positive feelings and emotions on bright, hot and sunny days, people would love to engage in outdoor games and activities in summer vacations.
·         Gender
Women have been culturally known to frequently and easily express their moods and emotions. This is why managers are very careful when dealing with female employees since they are very sensitive and emotional on such issues such as family, children’s rights and they are very self-conscious . Males are opposite to the females in the expression of their emotions even under very stressful situations men can hold their emotions well because of their self-control attitude.


·         Exercise
Research has shown that physical exercise can be used to improve mood for individual’s suffering from depression. Some organizations offer free gym memberships to their employees and encourages them to regularly exercise to improve their mood and enhance positive feelings towards their employers and coworkers.
I personally experience the urge for workout, when I start my day by going to the Gym, I have a fantastic day with full involvement in all that tasks and vice versa. (Slaski, 2002)
·         Sleep
Quality of sleep affects mood. Individuals who sleep for less than 8 hours per night are likely to experience negative feelings ,as in my case during previous couple of months I could not have quality sleep because of taking care of my 81 years old mom who had stroke last year . I had to make big changes in my daily routines and got extra help to get me back to my sleep patterns min of 8 hrs uninterrupted sleep which makes my day very productive otherwise I become irritable.
·         Age
Evidence shows that older individuals experience more positive feelings than young people. This is why young people suffer from depression, eating disorders and show suicidal tendencies as a result of negative and stressful feelings. As we grow older our personalities start getting settled  in terms with the environment we are living in which makes us less stressful and out of mood swings.
·         Physical environment

Physical settings can cause mood and emotions at work. A beautiful view of outdoor scenery from the office window can enhance the employee’s mood and sometimes when lighting at work is extreme either too bright or too dark can cause negative moods among employees (Kuller, Ballal et al, 2006)
Effects of mood and emotions in the workplace
The following are the effects/impacts of moods and emotions in the workplace;
        i.            Job satisfaction
Job satisfaction is a major motivating factor for employees to be more productive at work. It is also the major cause of high employee turnover rate. When employees are more satisfied at their jobs, they tend to experience more positive moods and emotions.
      ii.            Employee performance
Mood can affect personal judgment which in turn will influence performance. According to Ashkenazy &Humphrey (2011), managers who experience positive moods are likely to take greater risks and be more optimistic. This optimism by managers can inspire the employees to perform better too.
    iii.            Creativity  and innovativeness
Both positive and negative moods can contribute to innovation. However, only positive mood can influence creativity at work. According to Amiable, Barsade et al (2005), positive mood facilitates cognitive and divergent thinking which enhance tasks that require creativity.
    iv.            Interpersonal relationships
Personal moods among workers can influence their moods toward others. This in turn will affect to a significant extend interpersonal relationships among workers. A worker who shows positive moods attracts other to him/her which will lead to a positive interpersonal relationship and vice-versa
Different personality tests
There are many personality tests put forth by various psychologists. The main goals of psychology have been to establish a model that can conveniently describe human personality. While conducting various personality tests Personality test is basically a questionnaire designed to reveal various aspects of a person’s character.(Brief, 2002) One of the more prominent models for the description of personality in contemporary psychology is known as the five-factor model of personality (Digman, 1990) the big five personality tests model includes;
·         The Ten Item  Personality Inventory
·         Revised Neo personality Inventory
·         The Five Factor Personality Inventory
·         The Five Factor Model Rating Form
·         The Big Five Inventory











The five factor personality traits are in the following table


There has been much research conducted on how people describe others and five major dimensions of human personality have been found which is described as the OCEAN model of personality which have been described by the above table
1- Openness
2- Conscientiousness
3-Extraversion
4-Agreeableness
5-Neuroticism

3 - Personality Test Performed
I performed 3 personality tests on myself to explore my personality traits and I agreed to some of the results and some of the personality traits I found very helpful to incorporate into a leadership role to manage successfully an organization.
1-Big five personality test:
I did this big five personality test for myself and my son who is 23 , was another person in this comparison having the same ethnic and social back ground with the difference of the fact that I was born in Pakistan and he was born in USA and studied in USA.
When I performed the big five project personality test and results are following:


Your Results
Their Results

Closed-Minded

Open to New Experiences
Disorganized

Conscientious
Introverted

Extraverted
Disagreeable

Agreeable
Calm / Relaxed

Nervous / High-Strung
This score is close to my personality but I would say the test results don’t describe my personality fully as there are some personality traits which changes with the circumstances, for instance when I am dealing with my team members I have to be aggressive to get the job done on timely basis. As per the results of this test I have a relaxed personality trait along with the element of openness which is sometimes turns out to be opposite.
2-Type A / B personality Test
I also conducted Type A /B personality test and my score was 6 out of ten putting me in Type A and B personality.
Type A individual as ambitious, rigidly organized, highly status conscious, can be sensitive, care for other people, are truthful, impatient, always try to help others, , take on more than they can handle, want other people to get to the point, proactive, and obsessed with time management. People with Type A personalities are often high-achieving "workaholics" who multi-task, push themselves with deadlines, 
 Type B individuals are a contrast to those with Type A personalities. People with Type B personality by definition generally live at a lower stress level and typically work steadily, enjoying achievement but not becoming stressed when they are not achieved. When faced with competition, they do not mind losing and either enjoy the game or back down. They may be creative and enjoy exploring ideas and concepts. They are often reflective, thinking about the outer and inner worlds. Furthermore, Type B personalities may have a poor sense of time schedule and can be predominately right brained thinkers.
If I look into my personal and professional personality traits I have most of the qualities of Type A and few from Type B ,like I am very ambitious, organized, , sensitive, care for other people, truthful, take on more than what I can handle, proactive, and obsessed with time management, "workaholics" multi-task, push  with deadlines, and some of the qualities of type B which are I am very creative love exploring new ideas and concepts ,brain thinker and always stay at lower level of stress .
3-   Stress-O-Meter
I also conducted the stress-o-Meter test to measure the precise amount of stress in the working environment. There were 16 questions regarding the attitudes at work among the employers and employees.
Emotional intelligence
Emotional intelligence is also known as Emotional Quotient. According to Coleman &Andrew (2008), emotional intelligence isthe capacity of individuals to recognize their own, and other people's emotions, to discriminate between different feelings and label them appropriately, to use emotional information to guide thinking and behavior, and to manage and/or adjust emotions to adapt environments or achieve one's goals” Emotional intelligence (EQ) is more important than one’s intelligence (IQ) in attaining success in their lives and careers. (Abraham, 1999)
Understanding the Five Categories of Emotional Intelligence (EQ)
1.      Self-awareness.
 The ability to recognize an emotion as it “happens” is the key to your EQ. Developing self-awareness requires tuning in to your true feelings. If you evaluate your emotions, you can manage them. The major elements of self-awareness are:
  • Emotional awareness. Your ability to recognize your own emotions and their effects.
  • Self-confidence. Sureness about your self-worth and capabilities.
2.      Self-regulation
 (John, 1999)
You often have little control over when you experience emotions. You can, however, have some say in how long an emotion will last by using a number of techniques to alleviate negative emotions such as anger, anxiety or depression. A few of these techniques include recasting a situation in a more positive light, taking a long walk and meditation or prayer. Self-regulation involves
  • Self-control. Managing disruptive impulses.
  • Trustworthiness. Maintaining standards of honesty and integrity.
  • Conscientiousness. Taking responsibility for your own performance.
  • Adaptability. Handling change with flexibility.
  • Innovation. Being open to new ideas

3.      Motivation. 
To motivate yourself for any achievement requires clear goals and a positive attitude. Although you may have a predisposition to either a positive or a negative attitude, you can with effort and practice learn to think more positively. If you catch negative thoughts as they occur, you can reframe them in more positive terms — which will help you achieve your goals. Motivation is made up of:
  • Achievement drive. You’re constant striving to improve or to meet a standard of excellence.
  • Commitment. Aligning with the goals of the group or organization.
  • Initiative. Readying yourself to act on opportunities.
  • Optimism. Pursuing goals persistently despite obstacles and setbacks.

4.      Empathy. 

The ability to recognize how people feel is important to success in your life and career. The more skillful you are at discerning the feelings behind others’ signals the better you can control the signals you send them. (Mayer, 1997) An empathetic person excels at:
  • Service orientation. Anticipating, recognizing and meeting clients’ needs.
  • Developing others. Sensing what others need to progress and bolstering their abilities.
  • Leveraging diversity. Cultivating opportunities through diverse people.
  • Political awareness. Reading a group’s emotional currents and power relationships.
  • Understanding others. Discerning the feelings behind the needs and wants of others
.
5.      Social skills. 
The development of good interpersonal skills is tantamount to success in your life and career. In today’s always-connected world, everyone has immediate access to technical knowledge. Thus, “people skills” are even more important now because you must possess a high EQ to better understand, empathize and negotiate with others in a global economy. Among the most useful skills are (Barling, 2000) :
  • Influence. Wielding effective persuasion tactics.
  • Communication. Sending clear messages.
  • Leadership. Inspiring and guiding groups and people.
  • Change catalyst. Initiating or managing change.
  • Conflict management. Understanding, negotiating and resolving disagreements.
  • Building bonds. Nurturing instrumental relationships.
  • Collaboration and cooperation. Working with others toward shared goals.
  • Team capabilities. Creating group synergy in pursuing collective goals.

Psychologists have come up with various models to explain and demonstrate how emotional intelligence works. (Pipkins, 1998) These models are;
·         Traits model
This model uses the perception of individuals regarding their own emotional abilities. Individuals are then subjected to a traits emotional intelligence questionnaire to test their emotional intelligence


·         Ability model
This model was developed by Salovey and Mayer. The model is based on an individual’s ability to perceive emotions. Use emotions, understand and manage emotions. The model uses emotion-based problem solving tests to determine emotional score of an individual
·         Mixed model
This model was pioneered by Daniel Coleman. The model is based on self-awareness, social skill, empathy and motivation. Individuals are subjected to Emotional Intelligence Appraisal tests. (Dasborough, 2002)
            All of these models can be applied flexibly to various situations and aren’t only applicable in one type of situation. Leaders must be aware of all of these models of assessing emotional intelligence of the employees and other individuals.



Conclusion
As leaders, managers and individuals our success and the success of the today’s profession depend on our ability to read other people’s signals and react appropriately to them. The leaders must keep their employees happy mentally with the healthy environment around and positive emotions resulting from a fantastic work environment. The functions of positive emotions are that employees are extremely productive, motivated and happy. This would result in tremendous progress and profits for the organization.

Solution: Chaper 30 Government Budgets


Ch30 Government Budgets

Multiple Choice Questions


1. If South Dakota's governor reports a budget surplus in 2011, that state government likely:

A. received more in taxes than it spent in that year.
B. increased the proportional tax level.
C. equalized spending and taxes in that year.
D. increased the corporate income tax rate.

Answer: A  Reference:

Explanation:

Type: Multiple Choice                   


2. If the state of Washington's government collects $75 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be a:

A. budget deficit.
B. budget surplus.
C. decrease in payroll tax.
D. decrease in proportional taxes.

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


3. If the government for the state of Washington collects $65.8 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be:

A. an increase in payroll tax.
B. an increase in excise tax.
C. a budget surplus.
D. a budget deficit.

Answer: D  Reference:

Explanation:

Type: Multiple Choice                   


4. A ______________________ is created each time the federal government spends more than it collects in taxes in a given year.

A. budget deficit
B. budget surplus
C. corporate tax
D. regressive tax

Answer: A  Reference:

Explanation:

Type: Multiple Choice                   


5. A ______________________ means that government spending and taxes are equal.

A. fiscal budget
B. balanced budget
C. contractionary fiscal policy
D. discretionary fiscal policy

Answer: B  Reference:

Explanation:

Type: Multiple Choice                    


6. A __________________________ policy will cause a greater share of income to be collected from those with high incomes than from those with lower incomes.

A. proportional tax
B. regressive tax
C. progressive tax
D. excise tax

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


7. A ________________________________ is calculated as a flat percentage of income earned, regardless of level of income.

A. progressive tax
B. regressive tax
C. proportional tax
D. estate and gift tax

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


8. When the share of individual income tax collected by the government from people with higher incomes is smaller than the share of tax collected from people with lower incomes, then the tax is ____________________.

A. optional
B. proportional
C. progressive
D. regressive

Answer: D  Reference:

Explanation:

Type: Multiple Choice                   


9. In 2010, Microsoft will pay corporate income tax to the federal government based on the company's __________________.

A. proportional tax rate
B. corporate profits
C. optional tax rate
D. excise profits

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


10. What do goods like gasoline, tobacco, and alcohol typically share in common?

A. A progressive tax is imposed on each of them.
B. A regressive tax is imposed on each of them.
C. They are all subject to government excise taxes.
D. They are all subject to government fiscal taxes.

Answer: C  Reference:

Explanation:

Type: Multiple Choice   
                


11. The federal government levies _____________________________ on people who pass assets ____________________________, either after death or during life.

A. an estate and gift tax; to the next generation
B. a regressive tax; to non-family members
C. an excise tax; to their children
D. a progressive tax; to non-family members

Answer: A  Reference:

Explanation:

Type: Multiple Choice                   


12. If government tax policy requires Peter to pay $15,000 in tax on annual income of $200,000 and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is: 

A. optional.
B. progressive.
C. proportional.
D. regressive.

Answer: D  Reference:

Explanation:

Type: Multiple Choice                   


13. If government tax policy requires Jane to pay $25,000 in taxes on annual income of $200,000 and Mary to pay $10,000 in tax on annual income of $100,000, then the tax policy is: 

A. regressive.
B. progressive.
C. proportional.
D. optional.

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


14. If government tax policy requires Bill to pay $20,000 in taxes on annual income of $200,000 and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is: 

A. regressive.
B. progressive.
C. proportional.
D. optional.

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


15. By June, 2010, the U.S. government owed $13.6 trillion dollars ________________ that, over time, has remained unpaid.

A. from decreases in excise tax
B. from decreases in income tax
C. in accumulated government debt
D. from decreases in corporate tax

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


16. The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the economy.

A. an expansionary fiscal policy; an increase in government spending
B. a contractionary fiscal policy; a reduction in taxes
C. a contractionary fiscal policy; an increase in taxes
D. an expansionary fiscal policy; an increase in corporate taxes

Answer: A  Reference:

Explanation:

Type: Multiple Choice                   


17. If a government reduces taxes in order to increase the level of aggregate demand, what type of fiscal policy is being used?

A. discretionary
B. contractionary
C. standardized
D. expansionary

Answer: D  Reference:

Explanation:

Type: Multiple Choice                   


18. A typical ____________________________ fiscal policy allows government to decrease the level of aggregate demand, through increases in taxes.

A. expansionary
B. contractionary
C. discretionary
D. standardized

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


19. Which of the following terms is used to describe the set of policies that relate to government spending, taxation, and borrowing?

A. financial policies
B. monetary policies
C. fiscal policies
D. economic policies

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


20. A government collects $70 billion quarterly in tax revenue. Each year it allocates $15 billion to the justice system and $29 billion for the administrative costs. What percentage of its total annual tax revenue is left for allocation to the remaining categories of government spending?

A. 84.29%
B. 15.71%
C. 62.85%
D. 37.15%

Answer: A  Reference:

Explanation: **This question has a higher degree of difficulty because students must calculate total annual revenue based on tax revenue collected quarterly prior to calculating the remaining percentage.

Type: Multiple Choice                   


21. A government annually allocates $5 billion of its total tax revenue to weather related disaster relief, $21 billion to healthcare and $11 billion to education. If the government's quarterly tax revenue is $33 billion, what percentage of its budget is allocated annually to healthcare?

A. 17.50%
B. 63.63%
C. 25.00%
D. 15.90%

Answer: D  Reference:

Explanation: **This question has a higher degree of difficulty because students must calculate total annual revenue based on tax revenue collected quarterly prior to calculating the percentage annually allocated to healthcare.

Type: Multiple Choice                   


22. A government collects $700 billion annually in tax revenue. Each year it allocates $70 billion to the justice system and $130 billion for its own administrative costs. What percentage of annual tax revenue is allocated to these two categories of government spending?

A. 37.15%
B. 28.57%
C. 17.51%
D. 27.58%

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


23. A government annually collects $230 billion in tax revenue and allocates $70 billion to military spending. What percentage of this government's budget is spent on its military?

A. 27.50%
B. 36.63%
C. 30.43%
D. 41.90%

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


24. A government annually collects $320 billion in tax revenue and allocates $42 billion to education spending. What percentage of this government's budget is spent on education?

A. 24.50%
B. 12.31%
C. 30.13%
D. 13.12%

Answer: D  Reference:

Explanation:

Type: Multiple Choice                   


25. A government annually collects $230 billion in tax revenue and allocates $29 billion to its universal healthcare spending. What percentage of this government's budget is spent on healthcare?

A. 12.60%
B. 26.63%
C. 16.43%
D. 21.90%

Answer: A  Reference:

Explanation:

Type: Multiple Choice                   


26. A government collects $600 billion annually in tax revenue. Each year it allocates $35 billion to healthcare and $50 billion for education. What percentage of annual tax revenue is allocated to these two categories of government spending?

A. 21.37%
B. 14.16%
C. 17.51%
D. 26.41%

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


27. A government collects $700 billion annually in tax revenue. Each year it allocates $130 billion to interest payments that it must pay on its accumulated debt. What percentage of annual tax revenue is allocated to make these interest payments?

A. 17.15%
B. 28.75%
C. 18.57%
D. 27.58%

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


28. When the government passes a new law that explicitly changes overall tax or spending levels, it is enacting:

A. discretionary fiscal policy.
B. progressive fiscal policy.
C. regressive fiscal policy.
D. fiscal policy.

Answer: A  Reference:

Explanation:

Type: Multiple Choice                   


29. _____________________ are a form of tax and spending rules that can affect aggregate demand in the economy without any additional change in legislation.

A. Standardized employment budgets
B. Discretionary fiscal policies
C. Automatic stabilizers
D. Budget expenditures

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


30. In 2009, the U.S. government spent $1.4 trillion more than it collected in taxes. This deficit was about:

A. 22% of the size of the U.S. GDP in 2009.
B. 26% of the size of the U.S. GDP in 2009.
C. 18 % of the size of the U.S. GDP in 2009.
D. 10% of the size of the U.S. GDP in 2009.

Answer: D  Reference:

Explanation:

Type: Multiple Choice                   


31. Which of the following is the percentage of annual US government spending allocated to foreign aid?

A. 21%
B. 10%
C. 1%
D. 17%

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


32. At the beginning of 2009, a government had a total debt of $540 billion dollars. It ended 2009 with a $6 billion dollar budget surplus. In 2010, its budget surplus reached $8 billion dollars.  What is the total debt of the government equal to at the end of 2010?

A. $554 billion
B. $540 billion
C. $0
D. $14 billion

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


33. At the beginning 2010, the government of Norway had no debt and held $180 billion dollars in its sovereign fund. To stimulate its economy during 2011, Norway's government plans to spend $35 billion more than it will collect in tax revenue and in 2012, its spending will exceed tax revenues by $25 billion.  What will the total government debt equal at the end of 2012?

A. $60 billion
B. $0
C. $120 billion
D. $180 billion

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


34. If a country’s GDP increases, but its debt also increases during that year, then the country’s debt to GDP ratio for the year will _______________ in proportion to the magnitude of the changes.

A. decrease because GDP increased
B. increase because its debt increased
C. increase
D. increase or decrease

Answer: D  Reference:

Explanation:

Type: Multiple Choice                   


35. If a country’s GDP increases, but its debt decreases during that year, then the country’s debt to GDP ratio for the year will _______________ in proportion to the magnitude of the changes.

A. increase or decrease
B. decrease because its debt decreased
C. increase because GDP increased
D. decrease

Answer: A  Reference:

Explanation:

Type: Multiple Choice                    


36. If a country’s GDP decreases, but its debt increases during that year, then the country’s debt to GDP ratio for the year will _______________ in proportion to the magnitude of the changes.

A. decrease
B. increase or decrease
C. increase
D. decrease because GDP decreased

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


37. During a recession, if a government uses an expansionary fiscal policy to increase GDP, the:

A. aggregate supply curve will shift to the right. 
B. aggregate supply curve will shift to the left.
C. aggregate demand curve will shift to the left.
D. aggregate demand curve will shift to the right.

Answer: D  Reference:

Explanation:

Type: Multiple Choice                   


38. When inflation begins to climb to unacceptable levels in the economy, the government should:

A. use contractionary fiscal policy to shift aggregate demand to the right.
B. use contractionary fiscal policy to shift aggregate demand to the left.
C. use expansionary fiscal policy to shift aggregate demand to the right.
D. use expansionary fiscal policy to shift aggregate demand to the left.

Answer: A  Reference:

Explanation:

Type: Multiple Choice                   


39. When increasing oil prices cause aggregate supply to shift to the left, then:

A. unemployment and inflation decrease.
B. unemployment decreases and inflation increases.
C. unemployment and inflation increase.
D. unemployment increases and inflation decreases.

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


40. If an economy moves into a recession, causing that country to produce less than potential GDP, then:

A. automatic stabilizers will cause tax revenue to decrease and government spending to increase.
B. automatic stabilizers will cause tax revenue to increase and government spending to decrease.
C. tax revenue and government spending will be higher because of automatic stabilizers.
D. tax revenue and government spending will be lower because of automatic stabilizers.

Answer: A  Reference:

Explanation:

Type: Multiple Choice                   


41. If Canada's economy moves into an expansion while its economy is producing more than potential GDP, then:

A. government spending and tax revenue will increase because of automatic stabilizers.
B. government spending and tax revenue will decrease because of automatic stabilizers.
C. automatic stabilizers will increase government spending and decrease tax revenue.
D. automatic stabilizers will decrease government spending and increase tax revenue.

Answer: D  Reference:

Explanation:

Type: Multiple Choice                   


42. If individual income tax accounts for more total revenue than the payroll tax in the U.S., why would over half the households in the country pay more in payroll taxes than in income taxes?

A. income tax is a proportional tax
B. income tax is a progressive tax
C. payroll tax is a regressive tax
D. payroll tax is a progressive tax

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


43. If the economy is producing less than its potential GDP, _____________________ will show a larger deficit than the actual budget.

A. discretionary fiscal policy
B. the automatic stabilizers
C. the standardized employment budget
D. expansionary fiscal policy

Answer: C  Reference:

Explanation:

Type: Multiple Choice                   


44. When a country's economy is producing at a level that exceeds its potential GDP, the standardized employment budget will show a __________________ than the actual budget.

A. smaller surplus
B. smaller deficit
C. larger deficit
D. surplus

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


45. Assume that laws have been passed that require the federal government to run a balanced budget. During a recession, the government will want to implement _____________________, but may be unable to do so because such a policy would ____________________________.

A. contractionary fiscal policy; lead to a budget deficit
B. discretionary fiscal policy; lead to a budget surplus
C. contractionary fiscal policy; lead to a budget surplus
D. expansionary fiscal policy; lead to a budget deficit

Answer: D  Reference:

Explanation:

Type: Multiple Choice                   


46. The time lag for monetary policy is typically ________________ the time lag for fiscal policy.

A. longer than
B. shorter than
C. about the same as
D. the same as

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


47. Currently, the US government accumulated debt to GDP ratio: 

A. is lower than its historical high point.
B. is higher than it has ever been.
C. is lower than it has ever been.
D. has remained relatively steady for the past decade.

Answer: A  Reference:

Explanation:

Type: Multiple Choice                   


48. The current level of US government accumulated debt, when measured in nominal dollars:

A. has reached higher levels in the past.
B. is higher than it has ever been.
C. is lower than it has ever been.
D. has remained steady for the past decade.

Answer: B  Reference:

Explanation:

Type: Multiple Choice                   


49. A consensus estimate based on a number of studies suggests that if there is an increase in budget deficits (or a fall in budget surplus) by 1% of GDP, it will most likely cause which of the following?

A. an increase of 0.5–1.0% in the long-term interest rate
B. long and variable time lags in enacting the fiscal policy
C. smaller impact due to temporary fiscal policy
D. output above the potential GDP output level

Answer: A  Reference:

Explanation:

Type: Multiple Choice