The Extent to Which Tax Revenues Are Able to Finance

question 25

Multiple Choice

The extent to which tax revenues are able to finance the discretionary part of total government expenditure is best measured by the

• A)government's primary budget deficit/surplus.
• B)debt- to- GDP ratio.
• C)tax- to- GDP ratio.
• D)cyclically adjusted deficit/surplus.
• E)government's budget constraint.

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Definitions:

Surplus Of Labor

A situation where the supply of labor exceeds the demand for it, typically resulting in unemployment or lower wages.

Minimum Wage

The lowest remuneration that employers can legally pay their workers, intended to protect employees from unduly low pay.

Demand For Labor

The total amount of workers that employers are willing and able to hire at a given wage rate, in a given period.

Union Shop

A workplace where employees are not required to join the union in order to be hired but must join soon after they begin employment.