After the Professor Passed Back the Graded Test, You Heard

question 18

Multiple Choice

After the professor passed back the graded test, you heard a student remark, "I didn't do well because the professor gave us tricky questions." Which locus of control does this student most likely have?

• A) Internal locus of control
• B) External locus of control
• C) High tolerance for ambiguity
• D) Small locus of control

Comprehend the concept of a cyclically balanced budget in different economic conditions.

Know the implications of following a functional finance approach to federal budgeting.

Understand the impact of state and local government financing methods on public projects.

Grasp the concepts of crowding in and crowding out in the context of government spending and private investment.

---

Definitions:

Disposable Income

Households' available economic resources for spending and saving post-tax.

Disposable Income

The amount of money an individual or household has to spend or save after taxes have been deducted.

Savings

Money that is set aside from disposable income, often placed in interest-bearing accounts for future use or investment.

Inventory Investment

The commitment of resources towards the acquisition and holding of stocks or goods to be sold or used in future production processes.