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Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) In fiscal policy, the inside lags can take a long time because: 1)
A) macroeconomic data take time to gather and can be unreliable.
B) changes in taxes and government spending require approval from Congress and the
president.
C) consumers are usually slow in spending their tax rebate checks.
D) A and B are both correct.
Answer: D
Explanation: A)
B)
C)
D)

2) What kind of active fiscal policy was implemented in early 2008 in response to a slowing economy? 2)
A) decreased government spending on infrastructure
B) increased government spending on infrastructure
C) increased tax rates to the rich aimed at closing the budget deficit
D) tax rebates and investment incentives
Answer: D
Explanation: A)
B)
C)
D)

Recall Application 1, "Increasing Life Expectancy and Aging Populations Spur Costs of Entitlement Programs," to answer
the following questions:

3) According to the application, one implication of increasing the taxes to pay for the higher costs of 3)
entitlement programs is:
A) an increase in the disposable income of the nonretired individuals.
B) a smaller US Federal Budget.
C) a higher interest rate on US Treasury Bills.
D) the increased tax burden on firms and individuals.
Answer: D
Explanation: A)
B)
C)
D)

1
4) The permanent income view of consumption spending postulate when households receive a tax cut 4)
that is deemed temporary, then their consumption spending
A) will not change and the tax rebate is saved.
B) will decrease.
C) will increase by the full amount of the tax cut.
D) will increase by less than the tax cut.
Answer: A
Explanation: A)
B)
C)
D)

5) The federal budget works as an automatic economic stabilizer because: 5)


A) it does not require explicit action by the President or Congress.
B) budgetary lags are shorter than monetary lags.
C) it is activated by a constitutional amendment.
D) federal agencies can not be crowded out.
Answer: A
Explanation: A)
B)
C)
D)

6) According to the Laffer curve, higher tax rates will result in lower tax revenues if: 6)
A) only the poor are taxed.
B) workers are encouraged to work more hours.
C) economic activity is severely discouraged.
D) only the rich are taxed.
Answer: C
Explanation: A)
B)
C)
D)

7) The largest source of federal revenue is: 7)


A) estate and gift taxes. B) corporate income taxes.
C) social insurance taxes. D) individual income taxes.
Answer: D
Explanation: A)
B)
C)
D)

2
Figure 10.1

8) Refer to Figure 10.1 to answer this question. Which of the following fiscal policies would move the 8)
economy from point B to point A?
A) higher taxes B) lower government spending
C) lower taxes D) lower money supply
Answer: C
Explanation: A)
B)
C)
D)

9) Assume that the short-run AS is upward sloping. If the government chooses to reduce government 9)
expenditure or to increase taxes, according to the Aggregate Supply - Aggregate Demand model:
A) the price level will rise and GDP will decrease.
B) the price level will fall and GDP will increase.
C) the price level will fall and GDP will decrease.
D) the price level will rise and GDP will increase.
Answer: C
Explanation: A)
B)
C)
D)

10) Customs duties are: 10)


A) taxes levied on nonresidents that enter the United States.
B) taxes levied on goods exported from the United States.
C) taxes levied on goods imported into the United States.
D) tax commitments approved by past sessions of Congress.
Answer: C
Explanation: A)
B)
C)
D)

3
11) In 2009, federal spending was about: 11)
A) $2.7 trillion. B) $2.9 trillion. C) $3.52 trillion. D) $4.2 trillion.
Answer: C
Explanation: A)
B)
C)
D)

12) During the 1930s, politicians did not use fiscal policy to counter the Great Depression because: 12)
A) they feared the consequences of government budget deficits.
B) the Federal Reserve system opposed the idea.
C) the adherence to the gold standard prevented the necessary increase in the money supply.
D) they were concerned about the ensuing increase in interest rates.
Answer: A
Explanation: A)
B)
C)
D)

Recall Application 1, "Increasing Life Expectancy and Aging Populations Spur Costs of Entitlement Programs," to answer
the following questions:

13) According to the application, increasing life expectancy would affect the budget because 13)
A) as the population grows older, Medicare payments would increase.
B) as the population grows older, Medicaid payments would increase.
C) as the population grows older, the Social Security payments will increase.
D) all of the above are correct
Answer: D
Explanation: A)
B)
C)
D)

14) Successful stabilization policies are very difficult to implement because all of the following reasons, 14)
except:
A) decision-makers are slow to respond to changes in the economy.
B) the difference in the length between inside and outside lags.
C) decision-makers are slow to recognize changes in the economy.
D) fiscal policy takes time to operate.
Answer: B
Explanation: A)
B)
C)
D)

4
15) The length of time that the U.S. Treasury Department takes to print and mail tax rebate checks to 15)
help the economy out of a recession is part of the:
A) inside lag. B) inside-outside lag.
C) outside lag. D) identification lag.
Answer: C
Explanation: A)
B)
C)
D)

16) Which of the following contributed to the U.S. budget deficit in 2009? 16)
A) the large stimulus package in 2009.
B) the U.S. recession in 2007-2009
C) the large expenses associated with the wars in Iraq and Afghanistan
D) All of the above are correct.
Answer: D
Explanation: A)
B)
C)
D)

17) The basic idea of the fiscal multiplier is that an initial increase in government spending will have a: 17)
A) more than a one-to-one impact on short run aggregate supply.
B) more than a one-to-one impact on aggregate demand.
C) more than a one-to-one impact on long run aggregate supply.
D) more than a one-to-one impact on the budget deficit.
Answer: B
Explanation: A)
B)
C)
D)

18) Which of the following is included in "Entitlement and mandatory spending?" 18)
A) Medicare B) Medicaid
C) Social Security D) All of the above are correct.
Answer: D
Explanation: A)
B)
C)
D)

19) Contractionary fiscal policy shifts the: 19)


A) the short run aggregate supply curve to the left.
B) the aggregate demand curve to the right.
C) the short run aggregate supply curve to the right.
D) the aggregate demand curve to the left.
Answer: D
Explanation: A)
B)
C)
D)

5
Recall Application 2, "The Confucius Curve?" to answer the following questions:

20) According to the application, when Yu Juo was asked what should be done when the government 20)
had insufficient funds, his response was:
A) raise tax rates from 20 to 10 percent. B) cut tax rates from 20 to 10 percent.
C) cut tax rates from 50 to 20 percent. D) print currency.
Answer: B
Explanation: A)
B)
C)
D)

21) A reduction in government expenditure or an increase in taxes is defined as: 21)


A) expansionary fiscal policy. B) contractionary monetary policy.
C) expansionary monetary policy. D) contractionary fiscal policy.
Answer: D
Explanation: A)
B)
C)
D)

Recall Application 1, "Increasing Life Expectancy and Aging Populations Spur Costs of Entitlement Programs," to answer
the following questions:

22) According to the application, estimates of the size of spending for Social Security, Medicare and 22)
Medicaid is approximately ________ percent of GDP by 2075.
A) 7 B) 18 C) 22 D) 9
Answer: C
Explanation: A)
B)
C)
D)

23) Because taxes and transfer payments such as unemployment insurance act to change GDP without 23)
the need for policymakers to take explicit action, then these taxes and transfer payments are called:
A) discretionary stabilizers. B) automatic stabilizers.
C) mandatory stabilizers. D) fluctuation stabilizers.
Answer: B
Explanation: A)
B)
C)
D)

6
24) The key lesson to remember about budget deficits is that during a recession we should focus on: 24)
A) what the monetary policy does to the economy and not on what it does to the deficit.
B) what the fiscal policy does to the economy and not on what it does to the deficit.
C) what the fiscal policy does to the deficit and not on what it does to the economy.
D) what the fiscal policy does to the deficit and not on what it does to the national debt.
Answer: B
Explanation: A)
B)
C)
D)

25) In 2009, federal taxes were about ________ percent of GDP. 25)
A) 14.7 B) 25 C) 33 D) 71
Answer: A
Explanation: A)
B)
C)
D)

26) Which of the following is an example of an expansionary fiscal policy? 26)


A) decreasing taxes B) decreasing government spending
C) less subsidies to encourage investment D) increasing taxes
Answer: A
Explanation: A)
B)
C)
D)

27) An increased federal budget surplus during an expansion serves as an automatic economic 27)
stabilizer for all of the following reasons except:
A) higher personal income translates into a higher tax load and so consumption spending is
slightly curbed.
B) higher corporate profits translate into a higher tax load and so investment spending is slightly
curbed.
C) the positive government saving stimulates consumption spending.
D) reduced transfer payments from welfare programs partly offset the overall increase in
household income.
Answer: C
Explanation: A)
B)
C)
D)

28) At the end of the 1990s, the U.S. budget: 28)


A) was in deficit. B) was balanced.
C) was in surplus. D) none of the above
Answer: C
Explanation: A)
B)
C)
D)

7
Recall Application 2, "The Confucius Curve?" to answer the following questions:

29) According to the application, the central idea for the Laffer curve is: 29)
A) cutting tax rates may increase GDP growth.
B) cutting tax rates may decrease inflation.
C) cutting tax rates may increase tax revenues.
D) cutting tax rates may decrease tax revenues.
Answer: C
Explanation: A)
B)
C)
D)

30) During the Kennedy Era, the tax cut implemented resulted in 30)
A) driving the economy deeper into a depression.
B) stimulating economic growth.
C) facilitating a recession.
D) pushed the economy into stagflation.
Answer: B
Explanation: A)
B)
C)
D)

31) The smallest category of federal spending is: 31)


A) entitlements and mandatory spending. B) net interest.
C) discretionary spending. D) none of the above
Answer: B
Explanation: A)
B)
C)
D)

32) Social insurance taxes are: 32)


A) taxes levied on personal income to pay for Social Security and Medicare.
B) taxes levied on income from investment to pay for Social Security and Medicare.
C) taxes levied on personal income to pay for mandatory federal life insurance.
D) voluntary taxes to pay for selected social programs.
Answer: A
Explanation: A)
B)
C)
D)

8
33) The lags associated with fiscal policy can: 33)
A) stimulate output beyond full employment.
B) magnify economic fluctuations.
C) depress output below full employment.
D) all of the above
Answer: D
Explanation: A)
B)
C)
D)

34) All of the following are examples of outside lags associated with fiscal policy, except: 34)
A) the time it takes for individuals to increase consumption when personal taxes are lowered.
B) the delays in the actual formulation of fiscal policy.
C) the delays in the working of the multiplier effect through the economy.
D) the time it takes for businesses to increase investment when corporate taxes are lowered.
Answer: B
Explanation: A)
B)
C)
D)

35) Although government spending increased during the 1930s, 35)


A) the money supply increased too, so there was no net monetary expansion.
B) taxes increased too, so there was no net fiscal expansion.
C) interest rates rose too, so there was no lending expansion.
D) the exchange rate rose too, so there was no net trade expansion.
Answer: B
Explanation: A)
B)
C)
D)

36) Maintaining a balanced budget during an economic recession would be the difficult to implement 36)
because:
A) corporate income taxes would have to be raised in order to compensate for lower tax
revenues.
B) personal income taxes would have to be raised in order to compensate for lower tax revenues.
C) transfer payments would have to be reduced in order to curb spending.
D) all of the above
Answer: D
Explanation: A)
B)
C)
D)

9
37) Net interest spending consists of: 37)
A) interest payments on commercial debt held by the government.
B) interest payments on foreign debt held by the government.
C) interest payments on government debt held by the public.
D) all of the above
Answer: C
Explanation: A)
B)
C)
D)

38) Fiscal policy shifts the: 38)


A) the short run aggregate supply curve. B) the aggregate demand curve.
C) full employment level of output. D) the long run aggregate supply curve.
Answer: B
Explanation: A)
B)
C)
D)

Figure 10.2

39) Refer to Figure 10.2 to answer the question below. Points A, B, and C correspond to a GDP level in 39)
Year 2. Suppose that in Year 1 the economy was projected to be at Pt. A by Year 2. Which of the
following policies could bring the economy to Point B instead?
A) a correctly timed tax cut B) a correctly timed tax increase
C) an ill-timed tax cut D) an ill-timed tax increase
Answer: C
Explanation: A)
B)
C)
D)

10
40) An increase in government spending or a decrease in taxes will cause: 40)
A) the aggregate demand curve to the right.
B) the SR aggregate supply curve to the right.
C) the aggregate demand curve to the left.
D) the SR aggregate supply curve to the left.
Answer: A
Explanation: A)
B)
C)
D)

41) Which of the following is considered as the largest fiscal policy in U.S. history? 41)
A) the 2001 economic stimulus package in 2001
B) the 1992 expansionary stimulus package proposed by President Clinton in 1993
C) the New Deal in 1933
D) the $787 billion economic stimulus package in 2009
Answer: D
Explanation: A)
B)
C)
D)

42) Fiscal policy affects aggregate demand because: 42)


A) government purchases is a category of aggregate demand.
B) taxes affect disposable income and so consumption.
C) taxes affect corporate spending and so investment.
D) all of the above.
Answer: D
Explanation: A)
B)
C)
D)

43) Expansionary fiscal policy shifts the: 43)


A) the short run aggregate supply curve to the right.
B) the aggregate demand curve to the right.
C) the short run aggregate supply curve to the left.
D) the aggregate demand curve to the left.
Answer: B
Explanation: A)
B)
C)
D)

44) Which of the following is a federal and state health program that benefits the poor? 44)
A) Defense B) Medicaid C) Medicare D) Social Security
Answer: B
Explanation: A)
B)
C)
D)

11
45) The discretionary spending component of federal spending includes all programs that: 45)
A) is authorized by prior law.
B) Congress authorizes on a monthly basis.
C) is made mandatory by the president of the US.
D) Congress authorizes on an annual basis.
Answer: D
Explanation: A)
B)
C)
D)

46) Which of the following did not directly contribute to the U.S. budget deficit in 2009? 46)
A) the large US trade deficit with China
B) the U.S. recession in 2007-2009
C) the large stimulus package in 2009
D) the large expenses associated with the wars in Iraq and Afghanistan
Answer: A
Explanation: A)
B)
C)
D)

47) Using data from 2009, rank the federal government revenue sources from largest to smallest: 47)
A) individual income tax, corporate tax, estate tax, social insurance tax
B) estate tax, individual income tax, corporate tax, social insurance tax
C) individual income tax, estate tax, social insurance tax, corporate tax
D) individual income tax, social insurance tax, corporate tax, estate tax
Answer: D
Explanation: A)
B)
C)
D)

48) The Kennedy administration endorsed substantial tax cuts because: 48)
A) the unemployment rate was considered to be above its natural rate.
B) tax rates were very high, compared to tax rates today.
C) the economy was considered to be below its full employment level.
D) all of the above
Answer: D
Explanation: A)
B)
C)
D)

12
49) Which of the following government policies is not considered a fiscal policy? 49)
A) government policies regarding money supply in the economy
B) government policies regarding taxation
C) government policies regarding transfer payments and welfare benefits
D) government policies regarding the purchase of goods and services
Answer: A
Explanation: A)
B)
C)
D)

50) A government policy that leads to an increase in aggregate demand is called: 50)
A) an expansionary policy. B) a fiscal policy.
C) an aggregate demand policy. D) an economic growth policy.
Answer: A
Explanation: A)
B)
C)
D)

51) The length of time from when households receive tax rebate checks to the time they spend the 51)
checks is part of the:
A) inside-outside lag. B) inside lag.
C) identification lag. D) outside lag.
Answer: D
Explanation: A)
B)
C)
D)

52) Long-term budget deficits are bad for the economy for all the following reasons except: 52)
A) they decrease investment spending.
B) they make costlier for businesses to raise funds in financial markets.
C) they are likely to lead to deflation.
D) they slow future economic growth.
Answer: C
Explanation: A)
B)
C)
D)

53) The smallest source of federal revenue is: 53)


A) social insurance taxes. B) estate and excise taxes.
C) corporate income taxes. D) individual income taxes.
Answer: B
Explanation: A)
B)
C)
D)

13
54) A means tested program calculates the benefits of the recipient based on 54)
A) the government's budget. B) the government's income.
C) the recipient's income. D) the recipient's tax payments.
Answer: C
Explanation: A)
B)
C)
D)

55) As a large proportion of the population retire in the next few years, what would happen to the 55)
federal revenue?
A) It would decrease, as social security tax revenues decrease.
B) It would decrease, as estate and excise taxes decrease.
C) It would increase, as corporate tax revenues increase.
D) It would increase, as social security payments increase.
Answer: A
Explanation: A)
B)
C)
D)

56) Which of the following is a federal and state health program that benefits the elderly? 56)
A) Medicare B) Medicaid C) Defense D) Social Security
Answer: A
Explanation: A)
B)
C)
D)

57) The largest category of federal spending is: 57)


A) entitlements and mandatory spending. B) discretionary spending.
C) net interest. D) none of the above
Answer: A
Explanation: A)
B)
C)
D)

58) As the national debt of the United States becomes larger, which component of the Federal Spending 58)
would increase the most?
A) Net Interest B) Defense Spending
C) Discretionary Spending D) Entitlements and Mandatory Spending
Answer: A
Explanation: A)
B)
C)
D)

14
59) Federal discretionary spending consists of: 59)
A) all the programs authorized by Congress on an annual basis.
B) all the spending that Congress authorized by prior laws.
C) interest payments on government debt held by the public.
D) all of the above
Answer: A
Explanation: A)
B)
C)
D)

60) The largest category of discretionary federal spending is: 60)


A) funding for the Interior Department.
B) funding for the Defense Department.
C) funding for the Environmental Protection Agency.
D) funding for the State Department.
Answer: B
Explanation: A)
B)
C)
D)

61) If the government wants to reduce unemployment, government spending should be ________ 61)
and/or taxes should be ________.
A) decreased; increased B) increased; increased
C) decreased; decreased D) increased; decreased
Answer: D
Explanation: A)
B)
C)
D)

62) The length of time that Congress takes to formulate a tax bill to help the economy is part of the: 62)
A) inside lag. B) outside lag.
C) inside-outside lag. D) identification lag.
Answer: A
Explanation: A)
B)
C)
D)

63) Federal discretionary spending 63)


A) requires approval by the Federal Reserve.
B) requires the approval of Congress.
C) requires approval by the U.S. treasury.
D) requires approval by the U.S. Treasury and the president.
Answer: B
Explanation: A)
B)
C)
D)

15
64) According to economic studies, the 2001 tax rebates under the presidency of G. W. Bush did not 64)
increase aggregate demand because:
A) consumers saved, instead of spending, the rebates.
B) the cost of the war in Iraq required an immediate increase in taxes.
C) the tax rebates were not large enough to have a significant impact on aggregate demand.
D) the Republican-controlled Congress rolled back the tax rebates the following year.
Answer: A
Explanation: A)
B)
C)
D)

Recall Application 1, "Increasing Life Expectancy and Aging Populations Spur Costs of Entitlement Programs," to answer
the following questions:

65) According to the application, some economists suggest that in order to reduce the burden of 65)
entitlement programs on future generations, the government should:
A) make people save and invest for the future.
B) eliminate social security.
C) print money to help pay for the costs.
D) make retiring illegal.
Answer: A
Explanation: A)
B)
C)
D)

Recall Application 2, "The Confucius Curve?" to answer the following questions:

66) According to the application, the reason why Yu Juo advocated a tax cut if a famine occurs is 66)
because:
A) a tax cut allows people to buy more food.
B) a tax cut increases the government's mandatory spending.
C) a tax cut raises inflation and causes people to buy less.
D) a tax cut increases economic activity.
Answer: D
Explanation: A)
B)
C)
D)

67) Federal spending consists of: 67)


A) discretionary and mandatory spending.
B) defense and social security programs.
C) federal government purchases and transfer payments.
D) discretionary federal spending and debt payments.
Answer: C
Explanation: A)
B)
C)
D)

16
68) The largest category of entitlements and mandatory federal spending is: 68)
A) Medicare. B) Medicaid.
C) mean-tested farm price supports. D) Social Security.
Answer: D
Explanation: A)
B)
C)
D)

69) Which of the following is not included in "Entitlement and mandatory spending?" 69)
A) Medicare B) Social Security C) Defense D) Medicaid
Answer: C
Explanation: A)
B)
C)
D)

Figure 10.1

70) Refer to Figure 10.1 to answer this question. Suppose that the economy were at point A, and the 70)
government decreases government spending. In the short run , the economy will move to point:
A) E. B) C. C) D. D) B.
Answer: D
Explanation: A)
B)
C)
D)

17
71) As the population of the United States becomes older, which component of the Federal Spending 71)
would increase the most?
A) Net Interest B) Discretionary Spending
C) Entitlements and Mandatory Spending D) Defense Spending
Answer: C
Explanation: A)
B)
C)
D)

72) The tax cuts enacted during the first term of President Reagan were proposed to: 72)
A) decrease the supply of labor. B) increase aggregate demand.
C) improve economic incentives. D) decrease the supply of output.
Answer: C
Explanation: A)
B)
C)
D)

73) In 2009, federal spending was about ________ percent of GDP. 73)
A) 14.7 B) 33 C) 71 D) 25
Answer: D
Explanation: A)
B)
C)
D)

74) Fiscal policy refers to: 74)


A) the spending and taxing policies used by the government to influence the economy.
B) the techniques used by a business firm to reduce its tax liability.
C) the behavior of the nation's central bank, the Federal Reserve, regarding the nation's money
supply.
D) the government's ability to regulate a firm's behavior in the financial markets.
Answer: A
Explanation: A)
B)
C)
D)

75) Stabilization policies are policies designed: 75)


A) to raise or lower interest rates.
B) to close the budget deficit.
C) to close the trade deficit.
D) to move the economy closer to full employment.
Answer: D
Explanation: A)
B)
C)
D)

18
76) In fiscal policy, the outside lags: 76)
A) take a long time because macroeconomic data take time to gather and can be unreliable.
B) take a long time because changes in taxes and government spending require approval from
Congress and the president.
C) usually take a much shorter time than inside lags.
D) A and B are both correct.
Answer: C
Explanation: A)
B)
C)
D)

77) During the Kennedy Era, the highest tax rate for an individual was 77)
A) 33 percent. B) 10 percent. C) 91 percent. D) 40 percent.
Answer: C
Explanation: A)
B)
C)
D)

Recall Application 2, "The Confucius Curve?" to answer the following questions:

78) According to the application, if an economy experiences a recession, it should: 78)


A) increase spending. B) increase money supply.
C) devalue the currency. D) cut taxes.
Answer: D
Explanation: A)
B)
C)
D)

79) The tax cuts enacted during the first term of President Reagan were designed primarily to: 79)
A) decrease the supply of output. B) increase aggregate demand.
C) increase the supply of output. D) decrease aggregate demand.
Answer: C
Explanation: A)
B)
C)
D)

80) The federal government runs a budget surplus because: 80)


A) it spends more than what it receives in tax revenues.
B) it spends less than what it receives in tax revenues.
C) the economy is in a recession.
D) it buys back fewer bonds than it issues.
Answer: B
Explanation: A)
B)
C)
D)

19
81) The temporary tax surcharge enacted during the early years of the Vietnam War failed to decrease 81)
consumer spending because consumers based their spending on:
A) future income, not current income. B) current income.
C) past income, not current income. D) permanent income, not current income.
Answer: D
Explanation: A)
B)
C)
D)

82) The largest category of discretionary spending is/are: 82)


A) defense spending. B) non- defense spending.
C) entitlements and mandatory spending. D) net interest.
Answer: A
Explanation: A)
B)
C)
D)

83) The Kennedy administration was not concerned about the possible negative effect of large tax cuts 83)
because:
A) the tax cuts were initially designed to be temporary.
B) the ensuing federal deficit would disappear as government programs would be cut too.
C) the assassination of President Kennedy became a much more serious issue.
D) the ensuing federal deficit was projected to disappear as higher tax revenues would follow
from faster GDP growth.
Answer: D
Explanation: A)
B)
C)
D)

84) The permanent income view of consumption spending postulate that households base their 84)
spending on:
A) their current income. B) their highest level of income.
C) their average long-run income. D) future income.
Answer: C
Explanation: A)
B)
C)
D)

20
Recall Application 3, "Evaluating the Obama Fiscal Stimulus" to answer the following questions:

85) According to the application, the Council of Economic Advisers estimated that the economic 85)
stimulus package implemented by President Obama:
A) caused the unemployment rate of the U.S. to increase to 10 percent.
B) avoided the loss of 1 million jobs.
C) caused the loss of 1 million jobs.
D) had no effect on the US economy.
Answer: B
Explanation: A)
B)
C)
D)

86) ________ is the school of thought that emphasizes the role of taxes in the supply of output in the 86)
economy.
A) Supply-side economics B) Classical economics
C) Keynesian economics D) Supply and demand
Answer: A
Explanation: A)
B)
C)
D)

Figure 10.1

87) Refer to Figure 10.1 to answer this question. Suppose that the economy were at point A, and the 87)
government increases taxes. In the short run , the economy will move to point:
A) E. B) D. C) C. D) B.
Answer: D
Explanation: A)
B)
C)
D)

21
88) Individual income taxes are largely collected: 88)
A) by a combination of withheld tax and individual tax due filing payments.
B) by individual states and then transferred to the federal government.
C) through estimated tax payments.
D) by April 15th of the same year.
Answer: A
Explanation: A)
B)
C)
D)

89) Inside lags associated with fiscal policy are due to all of the following, except: 89)
A) the political infighting involved in approving changes in government spending or taxes.
B) the poor and conflicting data available to policymakers.
C) the delayed response of the firms to a tax cut.
D) the delays in assessing the real state of the economy.
Answer: C
Explanation: A)
B)
C)
D)

90) Although running a budget deficit during a recession should not be a source of concern, running a 90)
budget deficit when there is no recession is a bad policy due to:
A) long outside lags. B) crowding out.
C) long inside lags. D) crowding in.
Answer: B
Explanation: A)
B)
C)
D)

91) As the Vietnam War began and the economy started to overheat from the large military spending, 91)
policymakers:
A) decided to reduce spending on other federal programs.
B) became concerned about deflation.
C) were concerned about the rapidly increasing unemployment.
D) enacted a temporary tax surcharge.
Answer: D
Explanation: A)
B)
C)
D)

22
92) Congress increases government spending. This is an example of: 92)
A) monetary policy. B) incomes policy.
C) fiscal policy. D) supply-side policy.
Answer: C
Explanation: A)
B)
C)
D)

93) Which of the following did not cause the budget deficit to grow larger since 2001? 93)
A) the fast growing economy since 2003
B) the war in Iraq
C) the larger in unemployment benefit claims in 2003
D) the tax cuts in 2001 and 2003
Answer: A
Explanation: A)
B)
C)
D)

94) Which of the following is not considered a fiscal policy? 94)


A) the $787 billion economic stimulus package in 2009
B) the 2001 economic stimulus package in 2001
C) the Troubled Assets Relief Program (TARP) in 2008
D) All of the above are fiscal policies.
Answer: C
Explanation: A)
B)
C)
D)

95) Corporate taxes are: 95)


A) taxes levied on the capital owned by corporations.
B) taxes levied on the earnings of corporations.
C) taxes levied on the dividends paid by corporations to their stockholders.
D) taxes levied on the revenue of corporations.
Answer: B
Explanation: A)
B)
C)
D)

23
Recall Application 3, "Evaluating the Obama Fiscal Stimulus" to answer the following questions:

96) According to the application, did the economic stimulus package of the U.S. in 2009 have an 96)
economic effect?
A) No. It had no measurable effect.
B) Yes, the package worsened the recession in 2009.
C) Yes, even though the negative effects of the recession still lingered.
D) Yes, because the recession has all but ended by 2009.
Answer: C
Explanation: A)
B)
C)
D)

97) According to the application, which of the following was part of the methodology used by the 97)
Council of Economic Advisers when estimating the effects of the stimulus package?
A) They did not distinguish the economic effects of fiscal policy from monetary policy.
B) They assumed standard/ conventional fiscal multipliers for the economy.
C) They assumed that countries with the larger and more aggressive fiscal policies improved the
most.
D) All of the above are correct.
Answer: D
Explanation: A)
B)
C)
D)

98) Supply-side economists look at the effects of taxes on: 98)


A) aggregate demand. B) a firm's supply curve.
C) aggregate supply and aggregate demand. D) aggregate supply.
Answer: D
Explanation: A)
B)
C)
D)

99) An increase in the federal budget deficit during a recession serves as an automatic economic 99)
stabilizer because:
A) increased transfer payments from unemployment insurance partly offset the fall in household
income.
B) lower corporate profits translate into a lower tax load and so investment spending declines
slightly less.
C) lower personal income translates into a lower tax load and so consumption spending declines
slightly less.
D) All of the above are correct.
Answer: D
Explanation: A)
B)
C)
D)

24
100) The federal government runs a budget deficit when: 100)
A) it spends less than it receives in tax revenues.
B) it buys back more bonds than it issues.
C) it spends more than it receives in tax revenues.
D) the economy is growing rapidly.
Answer: C
Explanation: A)
B)
C)
D)

101) Federal revenue consists of taxes levied on: 101)


A) incomes of residents and nonresidents. B) both individuals and businesses.
C) estates and corporations. D) personal income and sales.
Answer: B
Explanation: A)
B)
C)
D)

Figure 10.2

102) Refer to Figure 10.2 to answer the question below. Points A, B, and C correspond to a GDP level in 102)
Year 2. Suppose that in Year 1 the economy was projected to be at Pt. A by Year 2. Which of the
following policies could bring the economy to Point C instead?
A) an ill-timed tax cut B) an ill-timed tax increase
C) a correctly timed tax increase D) a correctly timed tax cut
Answer: C
Explanation: A)
B)
C)
D)

25
103) An increase in taxes or a decrease in spending will cause: 103)
A) the aggregate demand curve to the left.
B) the SR aggregate supply curve to the left.
C) the SR aggregate supply curve to the right.
D) the aggregate demand curve to the right.
Answer: A
Explanation: A)
B)
C)
D)

104) If Congress were required to consent to every deviation of the actual budget from the initially 104)
approved budget, the federal budget would not work as an automatic economic stabilizer due to:
A) the long outside lags. B) the long inside lags.
C) the long fiscal year. D) the crowding out effect.
Answer: B
Explanation: A)
B)
C)
D)

105) Entitlement and mandatory spending consist of: 105)


A) all the programs authorized by Congress on an annual basis.
B) all the spending that Congress authorized by prior laws.
C) interest payments on government debt held by the public.
D) all of the above
Answer: B
Explanation: A)
B)
C)
D)

106) A government policy that leads to a decrease in aggregate demand is called: 106)
A) a contractionary policy. B) a contractual policy.
C) a recessionary policy. D) an economic growth policy.
Answer: A
Explanation: A)
B)
C)
D)

107) In fiscal policy, the inside lags: 107)


A) take about the same length of time as the outside lags.
B) are shorter than the outside lags.
C) are too long that they cannot be measured.
D) are longer than the outside lags.
Answer: D
Explanation: A)
B)
C)
D)

26
108) A government policy action that moves the economy closer to full employment or potential output 108)
is called:
A) a contractionary policy. B) an expansionary policy.
C) a stabilization policy. D) an aggregate supply policy.
Answer: C
Explanation: A)
B)
C)
D)

109) When the federal government runs a budget deficit: 109)


A) the total value of the national debt decreases.
B) interest payments on the existing debt decrease.
C) the US Mint prints the money to pay the deficit.
D) it borrows money from the public by issuing bonds.
Answer: D
Explanation: A)
B)
C)
D)

110) Which of the following is not true? 110)


A) The federal budget deficit works as a sort of automatic economic stabilizer.
B) The selling of government securities to pay for a deficit spurs private investment spending.
C) Tax revenues move in the same direction as the business cycle.
D) Expenditures on transfer payments move in the opposite direction of the business cycle.
Answer: B
Explanation: A)
B)
C)
D)

111) Estate and gift taxes are: 111)


A) taxes levied on the real estate assets of individuals and on their charity contributions.
B) taxes levied on the estates and previous gifts of individuals when they pass away.
C) taxes levied on the capital of corporations when they are dissolved or acquired by another
corporation.
D) taxes levied on the real estate assets of corporations and on their charity contributions.
Answer: B
Explanation: A)
B)
C)
D)

112) According to economic data, the last time the U.S. economy experienced a budget surplus was in: 112)
A) 1999. B) 2000. C) 2001. D) 2002.
Answer: C
Explanation: A)
B)
C)
D)

27
Figure 10.1

113) Refer to Figure 10.1 to answer this question. Suppose that the economy were at point A, and the 113)
government increases government spending. In the short run , the economy will move to point:
A) C. B) D. C) B. D) E.
Answer: A
Explanation: A)
B)
C)
D)

114) The tax surcharge enacted during the early years of the Vietnam War failed to decrease consumer 114)
spending because:
A) the tax surcharge was only temporary.
B) the tax surcharge increased household saving instead.
C) the Federal Reserve system simultaneously lowered interest rates.
D) the tax surcharge was not large enough.
Answer: A
Explanation: A)
B)
C)
D)

115) The budget deficit was about ________ percent of GDP in 2009. 115)
A) 6.7 B) 4.3 C) 12.8 D) 9.9
Answer: D
Explanation: A)
B)
C)
D)

28
116) Which of the following is an example of a contractionary fiscal policy? 116)
A) decreasing taxes B) decreasing the money supply
C) increasing the money supply D) increasing taxes
Answer: D
Explanation: A)
B)
C)
D)

117) Assume that the short-run AS is upward sloping. If the government chooses to increase 117)
government expenditure or to decrease taxes, according to the Aggregate Supply - Aggregate
Demand model:
A) the price level will fall and GDP will increase.
B) the price level will rise and GDP will decrease.
C) the price level will rise and GDP will increase.
D) the price level will fall and GDP will decrease.
Answer: C
Explanation: A)
B)
C)
D)

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

118) Explain why budget deficits are very sensitive to the state of the economy. 118)
Answer: Since tax collections are largely based on individual and corporate income, tax
revenues will fall sharply during a recession as national income falls. At the same
time, government transfer payments for things like unemployment insurance and
food stamps will also tend to increase during a recession. The result of lower tax
revenues and higher government spending will be a larger budget deficit.

During a boom, the opposite would be true. Tax revenues increase as incomes
increase and spending decreases as transfer payments decrease.
Explanation:

119) Explain why ill-timed fiscal policies can magnify economic fluctuations instead of 119)
smoothing them out.
Answer: Due to the existence of lags associated with fiscal policies, expansionary fiscal
measures (or contractionary fiscal measures, for that matter) can affect the level of
economic activity at a point of the business cycle when there is no further need for
stimulus (or contraction.) This bad timing only magnifies the economic fluctuations,
instead of dampening them.
Explanation:

120) "The budget deficits incurred by the government during the first term of George W. Bush 120)
were purely due to the tax cuts implemented by President Bush and by the wars in Iraq
and Afghanistan." Do you agree or disagree?
Answer: Disagree. The wars and the tax cuts played a major role in the budget deficits.
However, the economy was also in a recession, and during a recession, tax
collections decrease as incomes decrease. Further, the recession also meant that the
government increased transfer payments, since more workers were unemployed.
Explanation:

29
121) Use the Aggregate Demand - Aggregate Supply model to show how expansionary fiscal 121)
policy increases the level of GDP and also raises the price level.
Answer: Expansionary fiscal policy shifts the AD curve to the right, so intercepting the short
run aggregate supply curve at a point to the right of the original level of GDP and at
a point above the original price level.
Explanation:

122) Rank (from 1 to 4) the following categories of federal revenue from larger (1) to smaller (4): 122)

( ) Corporate income taxes


( ) Social Security taxes
( ) Individual income taxes
( ) Estate and gift taxes
Answer: (3) Corporate income taxes
(2) Social Security taxes
(1) Individual income taxes
(4) Estate and gift taxes
Explanation:

123) Rank (from 1 to 3) the following categories of federal spending from larger (1) to smaller 123)
(3):

( ) Discretionary defense spending


( ) Medicare and Medicaid spending
( ) Net interest spending
Answer: (2) Discretionary defense spending
(1) Medicare and Medicaid spending
(3) Net interest spending
Explanation:

124) What are the two possible sources of inside lags for fiscal policy? 124)
Answer: 1) It takes time to identify and recognize a problem. This occurs because the data
available to policy makers are poor and conflicting.

2) Once a problem has been diagnosed, it takes time for the government to take
action. This is because any changes in taxes or government spending require
approval from both houses of Congress and the president.
Explanation:

125) "The budget surpluses incurred by the government during the late 1990s were purely due 125)
to the major tax increase implemented during Clinton's Administration." Do you agree or
disagree?
Answer: Disagree. While the tax increase resulted in a large tax revenue. However, the
economy was growing very fast, resulting in an even larger tax revenues collected,
as higher incomes brought about by the growth also meant larger income tax
payments to the government.
Explanation:

30
126) List and describe the three channels through which budget deficits work as automatic 126)
economic stabilizers.
Answer: 1 Increased transfer payments increase the welfare of some households, partly
offsetting the fall in household income.
2 Households whose income is falling pay less in taxes. Therefore, their disposable
income does not decrease so much (in relative terms) and consumption spending
does not take a dive.
3 Corporate taxes, levied on corporate profits, fall in recessions because profits
decrease during economic downturns. Therefore, investment spending does not
decline as much (in relative terms.)
Explanation:

127) Explain why the budget deficit is considered to be an "automatic" economic stabilizer. 127)
Answer: The budget deficit is considered to be an "automatic" economic stabilizer because it
does not require explicit action from the President and Congress in order to change
the volumes of some types of government spending or the volumes of tax revenues.
Significant parts of the federal budget are not subject to the lags that characterize
fiscal policy in general. They act as a stabilizer to the economy because as the
economy improves, government transfer payments decrease while tax collection
increases. Both will cause the economy to not grow as fast.
Explanation:

128) What were some of the events that occurred in the 21st century that contributed to the 128)
dramatic rise in the budget deficit and in the government's debt?
Answer: The events would include: The recessions of 2001 and 2007 and the tax cuts that
were implemented in response, the financial crisis of 2008 and its aftermath, the
wars in Iraq and Afghanistan, and the devastation caused by hurricane Katrina.
Explanation:

129) Explain why there is a significant amount of delay in the implementation of a fiscal policy 129)
after identifying that the US economy is experiencing a recession.
Answer: The biggest source of delay in the formulation of fiscal policy is that changes in taxes
and spending requires the approval of both Congress and the president. This
problem becomes more pronounced when Congress is split evenly and neither side
has enough votes to pass a tax or spending bill.
Explanation:

130) Explain how the existence of lags limits the effectiveness of fiscal policy as a tool of 130)
economic stabilization.
Answer: Lags arise because policymakers are slow to recognize and respond to changes in
the economy. Additionally, fiscal policies take time to operate. These factors
contribute to poor timing of fiscal policies and can magnify economic fluctuations.
Explanation:

31
131) What is the difference between inside lags and outside lags? 131)
Answer: Inside lags are the time it takes to formulate policy. For fiscal policy, it is the time
between when a problem occurs in the economy and the time when that a policy is
implemented.

Outside lags are the time it takes for the policy to work. It occurs between the time
when a policy has been implemented and the time when aggregate demand and
GDP increases.
Explanation:

132) Explain how changes in government purchases and taxes can affect the level of aggregate 132)
demand both directly and indirectly.
Answer: Since government purchases is a component of aggregate demand, changing the
level of government purchases directly impacts aggregate demand. At the same
time, taxes determine disposable income, which in turn determine consumption
expenditure. Taxes also affect investment spending by business. Both consumption
expenditure and investment spending are components of aggregate demand.
Therefore, taxes affect aggregate demand indirectly.
Explanation:

133) Explain why budget deficits should not be a source of economic concern in the short run 133)
but at the same time can harm the economy in the long run.
Answer: In the short run, a budget deficit can work as an effective automatic economic
stabilizer by boosting the disposable income of some households through transfer
payments and reducing the total volume of taxes paid by households and
corporations. At full employment, running a continuous budget deficit will harm
the economy because the government will have to compete with private
corporations for raising funds, effectively crowding them out of financial markets.
Investment spending will decrease.
Explanation:

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

134) An expansionary fiscal policy shifts the aggregate demand curve to the left. 134)
Answer: True False
Explanation:

135) Inside lags in fiscal policy tend to take a long time, usually longer than the outside lags. 135)
Answer: True False
Explanation:

136) If households base their consumption spending on permanent income, then a temporary tax 136)
increase will cause a decrease in consumption.
Answer: True False
Explanation:

137) The corporate tax rate during the Kennedy Administration was lower than the corporate tax rate 137)
today.
Answer: True False
Explanation:

32
138) The existence of lags in implementing fiscal policy can magnify economic fluctuations. 138)
Answer: True False
Explanation:

139) Revenue from federal individual income taxes is larger than revenue from corporate income taxes. 139)
Answer: True False
Explanation:

140) Some outside lags in fiscal policy are due to the difficulty in recognizing the true state of the 140)
economy.
Answer: True False
Explanation:

141) The fiscal expansion during the Kennedy administration was successful because the economy was 141)
already operating above full employment.
Answer: True False
Explanation:

142) The highest tax rate for individuals during the Kennedy Administration was lower than the highest 142)
tax rate today.
Answer: True False
Explanation:

143) The Federal Excise taxes are a major source of revenues for the federal government. 143)
Answer: True False
Explanation:

144) The tax cuts of the first Reagan administration were intended to stimulate aggregate supply, rather 144)
than to stimulate aggregate demand.
Answer: True False
Explanation:

145) Proponents of the estate tax argue that the tax is necessary to prevent "unfair" accumulation of 145)
wealth across generations.
Answer: True False
Explanation:

146) The fiscal multiplier magnifies the impact of a change in government spending on the economy's 146)
short run aggregate supply.
Answer: True False
Explanation:

147) According to the textbook, the Great Depression was prolonged due to the lack of net fiscal 147)
expansion.
Answer: True False
Explanation:

33
148) A prolonged budget deficit when the economy is at full employment will eventually crowd out 148)
investment spending.
Answer: True False
Explanation:

149) The federal budget acts as an automatic economic stabilizer because the President has the power to 149)
authorize additional discretionary spending.
Answer: True False
Explanation:

150) If households base their consumption spending on permanent income, then a tax increase will 150)
decrease consumption only if the tax is deemed permanent.
Answer: True False
Explanation:

151) Higher taxes is an example of an expansionary fiscal policy. 151)


Answer: True False
Explanation:

152) Balancing the budget during an economic recession brings the economy closer to full employment. 152)
Answer: True False
Explanation:

153) The federal budget runs a deficit if tax revenues exceed government spending. 153)
Answer: True False
Explanation:

154) One reason why the US government experienced a surplus during Clinton's era was that the U.S. 154)
economy was growing.
Answer: True False
Explanation:

155) The George W. Bush administration inherited budget surpluses from the Clinton administration 155)
before starting to run large budget deficits itself.
Answer: True False
Explanation:

156) The response of the federal government to the devastation brought about by Hurricane Katrina 156)
resulted n a larger budget deficit.
Answer: True False
Explanation:

157) The federal budget runs a surplus if tax revenues exceed government spending. 157)
Answer: True False
Explanation:

158) Outside lags in fiscal policy tend to take a long time, usually longer than the inside lags. 158)
Answer: True False
Explanation:

34
159) The federal corporate tax is levied on corporate revenue. 159)
Answer: True False
Explanation:

160) The tax cut implemented after the Kennedy Administration stimulated economic growth. 160)
Answer: True False
Explanation:

Recall Application 3, "Evaluating the Obama Fiscal Stimulus" to answer the following questions:

161) According to the application, President Obama's economic stimulus package in 2009 had no effect 161)
on the US economy.
Answer: True False
Explanation:

162) Fiscal policy affects aggregate demand. 162)


Answer: True False
Explanation:

Recall Application 3, "Evaluating the Obama Fiscal Stimulus" to answer the following questions:

163) According to the application, President Obama's economic stimulus package in 2009 was the main 163)
reason why the economy went back to unemployment rates below 7 percent by 2009.
Answer: True False
Explanation:

164) The expenditures incurred by the government during the war in Iraq decreased the budget deficit. 164)
Answer: True False
Explanation:

165) In fiscal policy, the outside lag usually takes longer than the inside lag. 165)
Answer: True False
Explanation:

166) The tax surcharge enacted during the Vietnam War failed to reduce aggregate demand because the 166)
tax surcharge was only temporary.
Answer: True False
Explanation:

35
Answer Key
Testname: C10

1) D
2) D
3) D
4) A
5) A
6) C
7) D
8) C
9) C
10) C
11) C
12) A
13) D
14) B
15) C
16) D
17) B
18) D
19) D
20) B
21) D
22) C
23) B
24) B
25) A
26) A
27) C
28) C
29) C
30) B
31) B
32) A
33) D
34) B
35) B
36) D
37) C
38) B
39) C
40) A
41) D
42) D
43) B
44) B
45) D
46) A
47) D
48) D
49) A
50) A
36
Answer Key
Testname: C10

51) D
52) C
53) B
54) C
55) A
56) A
57) A
58) A
59) A
60) B
61) D
62) A
63) B
64) A
65) A
66) D
67) C
68) D
69) C
70) D
71) C
72) C
73) D
74) A
75) D
76) C
77) C
78) D
79) C
80) B
81) D
82) A
83) D
84) C
85) B
86) A
87) D
88) A
89) C
90) B
91) D
92) C
93) A
94) C
95) B
96) C
97) D
98) D
99) D
100) C
37
Answer Key
Testname: C10

101) B
102) C
103) A
104) B
105) B
106) A
107) D
108) C
109) D
110) B
111) B
112) C
113) A
114) A
115) D
116) D
117) C
118) Since tax collections are largely based on individual and corporate income, tax revenues will fall sharply during a
recession as national income falls. At the same time, government transfer payments for things like unemployment
insurance and food stamps will also tend to increase during a recession. The result of lower tax revenues and higher
government spending will be a larger budget deficit.

During a boom, the opposite would be true. Tax revenues increase as incomes increase and spending decreases as
transfer payments decrease.
119) Due to the existence of lags associated with fiscal policies, expansionary fiscal measures (or contractionary fiscal
measures, for that matter) can affect the level of economic activity at a point of the business cycle when there is no
further need for stimulus (or contraction.) This bad timing only magnifies the economic fluctuations, instead of
dampening them.
120) Disagree. The wars and the tax cuts played a major role in the budget deficits. However, the economy was also in a
recession, and during a recession, tax collections decrease as incomes decrease. Further, the recession also meant that
the government increased transfer payments, since more workers were unemployed.
121) Expansionary fiscal policy shifts the AD curve to the right, so intercepting the short run aggregate supply curve at a
point to the right of the original level of GDP and at a point above the original price level.
122) (3) Corporate income taxes
(2) Social Security taxes
(1) Individual income taxes
(4) Estate and gift taxes
123) (2) Discretionary defense spending
(1) Medicare and Medicaid spending
(3) Net interest spending
124) 1) It takes time to identify and recognize a problem. This occurs because the data available to policy makers are poor
and conflicting.

2) Once a problem has been diagnosed, it takes time for the government to take action. This is because any changes in
taxes or government spending require approval from both houses of Congress and the president.
125) Disagree. While the tax increase resulted in a large tax revenue. However, the economy was growing very fast,
resulting in an even larger tax revenues collected, as higher incomes brought about by the growth also meant larger
income tax payments to the government.

38
Answer Key
Testname: C10

126) 1 Increased transfer payments increase the welfare of some households, partly offsetting the fall in household income.
2 Households whose income is falling pay less in taxes. Therefore, their disposable income does not decrease so much
(in relative terms) and consumption spending does not take a dive.
3 Corporate taxes, levied on corporate profits, fall in recessions because profits decrease during economic downturns.
Therefore, investment spending does not decline as much (in relative terms.)
127) The budget deficit is considered to be an "automatic" economic stabilizer because it does not require explicit action
from the President and Congress in order to change the volumes of some types of government spending or the
volumes of tax revenues. Significant parts of the federal budget are not subject to the lags that characterize fiscal policy
in general. They act as a stabilizer to the economy because as the economy improves, government transfer payments
decrease while tax collection increases. Both will cause the economy to not grow as fast.
128) The events would include: The recessions of 2001 and 2007 and the tax cuts that were implemented in response, the
financial crisis of 2008 and its aftermath, the wars in Iraq and Afghanistan, and the devastation caused by hurricane
Katrina.
129) The biggest source of delay in the formulation of fiscal policy is that changes in taxes and spending requires the
approval of both Congress and the president. This problem becomes more pronounced when Congress is split evenly
and neither side has enough votes to pass a tax or spending bill.
130) Lags arise because policymakers are slow to recognize and respond to changes in the economy. Additionally, fiscal
policies take time to operate. These factors contribute to poor timing of fiscal policies and can magnify economic
fluctuations.
131) Inside lags are the time it takes to formulate policy. For fiscal policy, it is the time between when a problem occurs in
the economy and the time when that a policy is implemented.

Outside lags are the time it takes for the policy to work. It occurs between the time when a policy has been
implemented and the time when aggregate demand and GDP increases.
132) Since government purchases is a component of aggregate demand, changing the level of government purchases
directly impacts aggregate demand. At the same time, taxes determine disposable income, which in turn determine
consumption expenditure. Taxes also affect investment spending by business. Both consumption expenditure and
investment spending are components of aggregate demand. Therefore, taxes affect aggregate demand indirectly.
133) In the short run, a budget deficit can work as an effective automatic economic stabilizer by boosting the disposable
income of some households through transfer payments and reducing the total volume of taxes paid by households and
corporations. At full employment, running a continuous budget deficit will harm the economy because the
government will have to compete with private corporations for raising funds, effectively crowding them out of
financial markets. Investment spending will decrease.
134) FALSE
135) TRUE
136) FALSE
137) FALSE
138) TRUE
139) TRUE
140) FALSE
141) FALSE
142) FALSE
143) FALSE
144) TRUE
145) TRUE
146) FALSE
147) TRUE
148) TRUE
149) FALSE
150) TRUE
39
Answer Key
Testname: C10

151) FALSE
152) FALSE
153) FALSE
154) TRUE
155) TRUE
156) TRUE
157) TRUE
158) FALSE
159) FALSE
160) TRUE
161) FALSE
162) TRUE
163) FALSE
164) FALSE
165) FALSE
166) TRUE

40
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out into the room, several more died in the first twenty-four hours;
generally, because, not observing the lines which the domesticated
ones used as perches, they would fly against the perpendicular
walls, where, after fluttering awhile suspended, they would at length
sink, exhausted, perpendicularly downwards, the wings still vibrating,
and alight on the object that intercepted their downward course. If
this was the floor, they would presently rise on the wing, only again
to flutter against the wall as before; but often it would happen that
they would sink behind some of the many boxes with which the
shelves were lumbered; in which case the space being too narrow
for the use of their wings, they soon died unobserved, and were
found dead only upon searching. This was the fate of many; so that
out of the twenty-five, only seven were domesticated. These,
however, became quite at home; and I may here observe that there
was much difference in the tempers of individuals; some being
moody and sulky, others very timid, and others gentle and confiding
from the first. I have noticed this in other birds also; Doves, for
instance, which manifest individuality of character, perhaps as much
as men, if we were competent to appreciate it. My ordinary plan of
accustoming them to the room, and teaching them to feed, was very
simple. On opening the basket in which one or more newly-caught
Humming-birds were brought home, they would fly out, and
commonly soar to the ceiling, rarely seeking the window; there for
awhile, or against the walls, as above mentioned, they would flutter,
not beating themselves, but hanging on rapidly vibrating wings,
lightly touching the plaster with the beak or breast, every second,
and thus slightly rebounding. By keeping a strict watch on them while
so occupied, we could observe when they became exhausted, and
sunk rapidly down to alight; commonly, they would then suffer
themselves to be raised, by passing the finger under the breast, to
which they would apply their little feet. Having thus raised one on my
finger, and taken a little sugar into my mouth, I inserted its beak
between my lips. Sometimes it would at once begin to suck eagerly;
but at other times it was needful to invite it thus many times, before it
would notice the sugar: by persevering, however, they commonly
learned. And when one had once fed from the mouth, it was always
ready to suck afterwards, and frequently, as above narrated,
voluntarily sought my lips. Having given one his first lesson, I gently
presented him to the line, and drawing my finger from under him, he
would commonly take to it, but if not, the proceeding had to be
repeated: and even when perched, the repetition of the feeding and
placing on the line was needful to induce the habit. If the bird’s
temper were kindly, it soon began to perch on the line of its own
accord; when I ceased to feed it from my lips, presenting to it,
instead, the glass of syrup. After it had sucked thus a time or two, it
found it as it stood at the edge of a table; and I considered it
domesticated. Its time was now spent in incessant short flights about
the room, alternating with momentary rests on the line; often darting
to another on the wing, when the most rapid and beautiful evolutions
would take place, in which the long tail-feathers whisked about in a
singular manner. I believe these rencontres were all amicable, for
they never appeared to come into actual contact, nor to suffer any
inconvenience from them. After close observation to ascertain the
fact, I was fully convinced that the object of their incessant sallies on
the wing was the capture of minute insects; so minute that they were
generally undistinguishable to the human eye. Yet the action of the
bird shewed that something was pursued and taken, and though
from the extreme rapidity of their motions, I could not often see the
capture, yet several times I did detect the snap of the beak, and
once or twice witnessed the taking of some little fly, just large
enough to be discerned in the air. Moreover, the flights were
sometimes very short; a leap out upon the wing to the distance of a
foot or two, and then a return to the perch, just as the true Fly-
catchers do; which indeed the Humming-birds are, to all intents and
purposes, and most accomplished ones. I judge, that, on a low
estimate, each captured on the wing at least three insects per
minute, and that, with few intervals, incessantly, from dawn to dusk.
Abroad I do not think quite so many would be taken in the air, the
more normal way being, I presume, the securing of the minute
creatures that inhabit the tubes of flowers; yet we perpetually see
them hawking even at liberty. My captives would occasionally fly to
the walls, and pick from the spiders’ webs, with which they were
draped. When they rested, they sat in nearly an upright posture, the
head usually thrown a little back, and the crimson beak pointing at a
small angle above the horizon, the feet almost hidden, the belly
being brought into contact with the perch, the tail somewhat thrown
in under the body, and the long feathers crossing each other near
their middle. Their ordinary mode of coming down to drink was
curious. I have said that their little reservoir of syrup was placed at
the edge of a table, about two feet beneath them. Instead of flying
down soberly in a direct line, which would have been far too dull for
the volatile genius of a Humming-bird, they invariably made a dozen
or twenty distinct stages of it, each in a curve descending a little, and
ascending nearly to the same plane, and hovering a second or two
at every angle; and sometimes when they arrived opposite the cup
more quickly than usual, as if they considered it reached too soon,
they would make half a dozen more horizontal traverses before they
would bring their tiny feet to the edge of the glass and insert their
sucking tongue. They were very frequently sipping, though they did
not take much at a time; five birds about emptied a wine-glass per
diem. Their fæcal discharges were altogether fluid, and exactly
resembled the syrup which they imbibed. They were rather late in
retiring to roost, frequently hawking and sporting till dusk; and when
settled for the night, were restless, and easily disturbed. The
entrance of a person with a candle, at any hour, was liable to set one
or two upon the wing; and this was always a matter of regret with
me, because of the terror which they seemed to feel, incapacitating
them from again finding the perching line. On such occasions they
would again flutter against the walls, and sink down, as when first
captured, with the same danger of accident, if not closely watched,
and picked up when exhausted. After having inhabited my specimen-
room for some time, (those, first caught almost four weeks,) I
transferred them, five in number, all males, to a large cage with a
wired front, and two transverse perches; I had much dreaded this
change, and therefore did it in the evening, hoping that the
intervening night would calm them. I had in some measure prepared
them for the change by placing the cage (before the front was
affixed) upon the table some days previously, and setting their syrup-
cup first close to the cage, then a little within, then a little farther, until
at length it stood at the remotest corner. And I was pleased to
observe that the birds followed the cup every day, flying in and out of
the cage to sip, though at first very shyly and suspiciously, many
times flying in and suddenly darting out without tasting the fluid. After
I had shut them in, they beat and fluttered a good deal; but by the
next day I was gratified to find that all had taken their places quietly
on the perches, and sipped at the syrup, though rather less than
usual. I had now high hopes of bringing them alive to England,
thinking the most difficult task was over; especially as within a day or
two after, I added to them two more males, one of which presently
learned both to perch and to find the cup, and also a female. The
latter interested me much, for on the next day after her introduction, I
noticed that she had seated herself by a long-tailed male, on a perch
occupied only by them two, and was evidently courting his caresses.
She would hop sideways along the perch by a series of little quick
jumps, till she reached him, when she would gently peck his face,
and then recede, hopping and shivering her wings, and presently
approach again to perform the same actions. Now and then she
would fly over him, and make as if she were about to perch on his
back, and practise other little endearments; to which, however, I am
sorry to say, he seemed most ungallantly indifferent, being, in fact,
the dullest of the whole group. I expected to have them nidificate in
the cage, and therefore affixed a very inviting twig of lime-tree to the
cage wall, and threw in plenty of cotton, and perhaps should have
succeeded, but for the carelessness of my servant. For he having
incautiously left open the cage door, the female flew out and effected
her escape.
But all my hopes of success were soon to be quashed; for after
they had been in cage but a week, they began to die, sometimes two
in a day; and in another week, but a solitary individual was left, which
soon followed the others. I vainly endeavoured to replace them, by
sending to the mountain; for where the species was so numerous
two months before, they were now (beginning of June) scarcely to be
seen at all. The cause of the death of my caged captives, I
conjecture to have been the want of insect food; that,
notwithstanding their frequent sipping at the syrup, they were really
starved to death. I was led to this conclusion, by having found, on
dissecting those which died, that they were excessively meagre in
flesh, and that the stomach, which ordinarily is as large as a pea,
and distended with insects, was, in these, shrunken to a minute
collapsed membrane, with difficulty distinguished. If I had an
opportunity of trying the experiment again, with the advantage of this
experience, I would proceed rather differently. I would have a very
capacious cage, wired on every side, in the bottom of which a supply
of decaying fruit, such as oranges or pines, should be constantly
kept, but covered with wire that the birds might not defile their
plumage. This, as I have proved, would attract immense numbers of
minute flies, which, flitting to and fro in the cage, would probably
afford sufficient sustenance to the birds in conjunction with the syrup.
The birds, however, should be caged as short a time as possible
before sailing, which might be early in May; and by a steamer, which
calling at St. Thomas, Bermuda, and the Azores, large bunches of
fresh flowers, and even herbage, might be obtained at short intervals
on the voyage, with which, of course, a multitude of insects would be
introduced. Thus, I still think, these lovely birds might be introduced
into our conservatories and stoves, where there would be no
difficulty in preserving them. Mr. Yarrell has suggested to me, that
possibly young ones fed from the nest upon syrup alone, might be
able to live without insect food.

VERVAIN HUMMING-BIRD.[25]

Mellisuga humilis.—Mihi.
Ornismya minima, Less. Ois. M. 79. (nec auct.)

[25] Male. Length 2⁷⁄₁₀ inches, expanse 3½, flexure 1½, rictus ⁵⁄₁₀,
(nearly,) tail ⁸⁄₁₀, tarsus rather above ¹⁄₁₀, middle toe ¹⁄₁₀, claw ¹⁄₁₀.
Irides, beak, and feet black. Whole upper parts metallic-green; wings
purplish-black; tail deep-black; chin and throat, white speckled with black;
breast white; sides metallic-green; belly whitish, each feather tipped with
green; vent white; under tail-coverts white, tipped faintly with green.
Female. Rather less; of a yellower green above, which descends half-
way down upon the tail. Whole under parts pure white, unspotted,
untinged with green; tail-feathers, except the uropygials, tipped with
white.
Intestine 1⁹⁄₁₀ inch: no cæca.

That this is the species of which M. Lesson has figured the female
in his Oiseaux Mouches, pl. 79, there can be no doubt. His figure is a
very fair representation; though it is too slender, and the white mark
behind the eye I cannot find: this, however, I do not wonder at, if, as
is most probable, his figure was taken from a dried specimen. He
says, “it is beyond contradiction the smallest of all those yet known,
and without doubt is the ‘very little Humming-bird’ of voyagers. Its
length is 2 inches and 4 lines.” But that it is the Trochilus minimus of
Linnæus, Buffon, Edwards, and Latham, who can imagine, that puts
any faith in testimony? Edwards’ figure, which is said to be “of its
natural bigness,” measures 1⁴⁄₁₀ inch; that in the Pl. Enl. 276. fig. 1,
is about 1³⁄₁₀; and Latham, who says expressly, “I have received this
from Jamaica,” gives its total length 1¼ inch, and that of its beak, 3½
lines. It is true the description as to colouring, &c., bears a very close
resemblance to mine, but no one accustomed to the precision of
science could mistake 2½ inches for 1¼![26] Neither is it possible that
these minute specimens can be the young of the present species; for
nestling Humming-birds, even when not half-fledged, are very little
less in size than the adult, and, when able to leave the nest, are
scarcely to be distinguished as to dimensions. Moreover, having
reared this species I can speak positively. But Mr. Bullock records
having obtained in Jamaica a species whose body was but half an
inch in length; this specimen is understood to have become the
possession of the late George Loddiges, Esq., and I have been
assured by an ornithological friend, who has seen it, that it is no
larger than the species of the old naturalists. Under these
considerations, Lesson’s name being manifestly misapplied, I have
ventured to give to the present species, a new appellation, derived
from its habit of buzzing over the low herbaceous plants of pastures,
which our other species do not. The West Indian vervain
(Stachytarpheta) is one of the most common weeds in neglected
pastures, shooting up everywhere its slender columns, set round
with blue flowers, to the height of a foot. About these our little
Humming-bird is abundant during the summer months, probing the
azure blossoms a few inches from the ground. It visits the spikes in
succession, flitting from one to another, exactly in the manner of the
honey-bee, and with the same business-like industry and application.
In the winter, the abundance of other flowers and the paucity of
vervain-blossoms, induce its attentions to the hedgerows and woods.
[26] Yet Sloane describes his “Least Humming-bird,” (Jam. 308) as “about
1¼ inch long, from the end of the bill to that of the tail,” while of his figure
the bill alone measures ¾ inch, and the whole bird 2⁵⁄₈. As the worthy
Doctor, however, is said to have taken his admeasurements with his
thumb-nail, this slight variation is the less surprising.

I have sometimes watched, with much delight, the evolutions of


this little species at the moringa tree already spoken of. When only
one is present, he pursues the round of the blossoms soberly
enough, sucking as he goes, and now and anon sitting quietly on a
twig. But if two are about the tree, one will fly off, and, suspending
himself in the air a few yards distant, the other presently shoots off to
him, and then, without touching each other, they mount upward with
a strong rushing of wings, perhaps for five hundred feet. Then they
separate, and each shoots diagonally towards the ground, like a ball
from a rifle, and wheeling round, comes up to the blossoms again,
and sucks, and sucks, as if it had not moved away at all. Frequently
one alone will mount in this manner, or dart on invisible wing
diagonally upward, looking exactly like a humble-bee. Indeed, the
figure of the smaller Humming-birds on the wing, their rapidity, their
arrowy course, and their whole manner of flight, are entirely those of
an insect; and one who has watched the flight of a large beetle or
bee, will have a very good idea of the form of one of these tropic
gems, painted against the sky. I have observed all our three species
at one time engaged in sucking the blossoms of the moringa at
Content; and have noticed that whereas Polytmus and Mango
expand and depress the tail, when hovering before flowers, Humilis,
on the contrary, for the most part, erects the tail; but not invariably.
The present is the only Humming-bird that I am acquainted with,
that has a real song. Soon after sunrise in the spring months, it is
fond of sitting on the topmost twig of some mango or orange tree,
where it warbles, in a very weak but very sweet tone, a continuous
melody, for ten minutes at a time: it has little variety. The others have
only a pertinacious chirping.
The season of nidification seems to be as protracted in this, as in
the former species; nor does the structure itself differ, except in
being of about half the size. The small bushes of Lantana, so
common by roadsides, and always covered with orange and yellow
blossom, are favourite situations for the domestic economy of this
minim bird. The smooth twigs of the bamboo also are not
unfrequently chosen. It is not an uncommon thing in Jamaica, for a
road up a mountain to be cut in zig-zag terraces to diminish the
steepness; and, to prevent the lower side of such a road from
crumbling away, stems of green bamboo are cut and laid in a
shallow trench along the edge. Shoots spring from every joint, and
presently a close row of living palisades are growing along the
margin of the road, whose roots, as they spread, effectually bind
together the mountain-side, and make the terrace perpetual; while,
as they increase in height and thickness, they throw their gracefully-
waving tufts over the way, like gigantic ostrich plumes, affording most
refreshing shadow from the heat. Such a bamboo-walk, as it is
called, winds up the steep side of Grand Vale mountain in St.
Elizabeth’s, and here the nests of the Vervain Humming-bird are
frequently met with.
One day in June, being up this road, I found two nests attached to
twigs of bamboo, and one just commenced. Two parallel twigs were
connected together by spiders’ webs, profusely but irregularly
stretched across, and these held a layer of silk-cotton, which just
filled up the space (about an inch square) between them. This was
the base. The others were complete cups of silk-cotton exceedingly
compact and neat, ornamented outside with bits of grey lichen, stuck
about. Usually the nest is placed on a joint of a bamboo branch, and
the diverging twigs are embraced by the base. The nest is about the
size of half a walnut-shell, if divided not lengthwise, but transversely.
To see the bird sitting in this tiny structure is amusing. The head and
tail are both excluded, the latter erect like a wren’s: and the bright
eyes glance in every direction. One of these contained two eggs, the
other a single young nearly fledged, which, with the nest, I carried to
Content to rear.
It is interesting to observe the cleanliness of animals; the dung of
young birds would greatly inconvenience them in the nest, and
probably cause disease; it is therefore wisely ordained that there
should be some mode of getting rid of it. Swallows carry out the
excrement of their young in their beaks; and this they are able to do,
as at that early season it is enclosed in a tenacious jelly. I observed
with admiration, and with adoration, of the tender mercy of God in
directing such minutiæ as these, for the comfort of His creatures,
that this little Humming-bird, while I was carrying it, elevating its body
above the edge of the nest, in the bottom of which it ordinarily lay,
ejected the alvine discharge in a forcible jet, to the distance of
several feet.
This little nestling I attempted to rear, and had every prospect of
succeeding, for it eagerly received the juice of sugar-cane, which I
administered to it in a small quill, many times in the day, sometimes
adding small insects, as in a former case. But on the third day I was
necessitated to return to Bluefields, and rode fifteen miles with the
bird in my hand, enclosed in an open box. I took every care of it; but
whether from too long fasting, or from the shaking, or exposure to
the sun, I know not, but it was dying when I arrived, and a few
minutes put an end to its sufferings and my expectations.
Several times I have enclosed a nest of eggs in a gauzed cage,
with the dam, taken in the act of sitting; but in no case did she
survive twenty-four hours’ confinement, or take the slightest notice of
her nest. When engaged in the attempt to domesticate a colony of
Polytmus, an opportunity offered to add this minute species to my
aviary. For at that time two large tamarind-trees very near the house
were in full blossom, and round them the Vervain Humming-bird was
swarming. I never saw so many of this tribe at once; they flocked
together, as Sam truly observed, “like bees,” and the air resounded
with their humming, as if in the neighbourhood of a hive. We caught
several with the net, but could make nothing of them; they were
indomitably timid. When turned into the room, they shot away into
the loftiest angle of the ceiling, and there hovered motionless, or
sometimes slowly turning as if on a pivot, their wings all the time
vibrating with such extraordinary velocity as to be visible only as a
semicircular film on each side. The fact that the extent of the
vibration reached 180°, (or so nearly that it seemed to me such,)
shews the immense power of the small muscles by which the wings
are put in motion. Neither of our other species approaches either the
rapidity or extent of this oscillation; and hence with this bird alone
does the sound produced by the vibration of the wings acquire the
sharpness of an insect’s hum. The noise produced by the hovering
of Polytmus is a whirring exactly like that of a wheel put into rapid
revolution by machinery; that of Humilis is a hum, like that of a large
bee.
The spirit of curiosity is manifested by this little bird as well as by
the larger species. When struck at, it will return in a moment, and
peep into the net, or hover just in front of one’s face. The stories told
of Humming-birds attacking men, and striking at the eyes with their
needle-like bills, originated, I have no doubt, in the exaggeration of
fear, misinterpreting this innocent curiosity.

Fam.—CERTHIADÆ.—(The Creepers.)
BLACK AND WHITE CREEPER.[27]

Mniotilta varia.
Motacilla varia, Linn.
Sylvia varia, Lath.
Certhia maculata, Wils.
Mniotilta varia, Vieill.
Certhia varia, Aud. pl. 90.

[27] Length 5 inches, expanse 8½, flexure 2⁸⁄₁₀, tail 2, rictus ⁶⁄₁₀, tarsus
⁸⁄₁₀, middle toe ⁶⁄₁₀.

This pretty bird, whose lot has been to oscillate in the systems of
naturalists from the Warblers to the Creepers and from the Creepers
to the Warblers, appears to have as much ambiguity in its manners
as in its structure. One day I noticed it, and watched its proceedings,
in one of the spreading Black-withes, that form large tangled masses
of long slender branches over a clear space of mud in the morasses,
the topmost stratum of which alone is furnished with leaves, but that
dense enough, not only with its own foliage, but also with the drapery
of convolvulus that is usually hung in profusion over it. The little bird
was mounting from the bottom hopping from twig to twig, searching
and picking as it went up; when it reached the bushy top, it suddenly
descended, apparently by dropping perpendicularly to the bottom,
where it picked a little about the mud, then mounted gradually, and
dropped as before. After proceeding thus two or three times, I
secured it.
At other times it affects the trunks of trees, even large ones, like a
true Creeper, hopping diagonally up the perpendicular bole, and
when at a good height, dropping down upon the wing, to alight again
near the root, and proceed upward in another line. Now and then it
stops to pick small insects from the crevices of the bark: and this sort
of food I have always found in its stomach.
It is rather common in Jamaica during the winter months: we first
saw it on the 26th of September, and last on the 30th of April.
The following interesting note accompanies a very correct drawing
of this species by Robinson (Birds: large Folio):—“Motacilla alba et
nigra varia.—It was pursued by a Hawk, and took sanctuary in
Chateau-morant House. Mr. Holladay, overseer at Chateau in
Clarendon, made me a present of the live bird, December 24th,
1760. It was very tame, and so hungry that it picked some feathers
out of a dead bird, and ate them. It weighed somewhat less than two
drachms.”

Fam.—TURDIDÆ.—(The Thrushes.)
HOPPING DICK.[28]
Twopenny Chick.

Merula leucogenys.
Turdus leucogenys, Gmel.
Merula solicitor, Hill.

[28] Length 9½ inches, expanse 14½, flexure 5, tail 3¾, rictus 1¼, tarsus
1½, middle toe 1¹⁄₁₀. Irides doll orange; beak bright orange, blackish at
tip; feet deep fulvous. Whole upper parts greyish-black; crown and tail
deep black; wing-quills brownish-black; the innermost two of the greater
coverts have the edge of the outer web pure white. Under parts ashy-
grey, silky; darkest on throat; chin usually white; medial line of belly white:
under tail-coverts black, tipped with white. Sexes exactly alike.

The birds on which the peasantry in any country have conferred


homely abbreviations of human names, are, I think, only such as
have something lively and entertaining in their manners. Examples of
familiar birds will at once occur to an English reader, and the subject
of the present note is by no means an exception to the rule. He is
one of the liveliest of our Jamaican birds: in woody places his clear
whistle perpetually strikes the ear of the passenger, as he sits
among the close foliage, or darts across the glade. Not unfrequently
we are startled by a shrill scream in some lonely place, and out
rushes the Hopping Dick, jumping with rapidity across the road,
almost close to our horse’s feet. He greatly reminds me of the
English Blackbird, in his sable plumage, and bright yellow beak, but
especially when hopping along the branches of some pimento tree,
or upon the sward beneath, in those beautiful park-like estates called
pens. The keen glancing of his eye, his quick turns and odd
gesticulations, the elevation of his long tail almost erect, his nods
and jerks, have in them an uncommon vivacity, which is not belied by
his loud voice, as he repeats a high mellow note four or five times in
rapid succession, just preparatory to, or during, his sudden flights
from tree to tree. His notes are various: sometimes we hear him in
the lone wood, uttering, click, click, click, without variation of tone or
intermission, for many minutes together. His song which I have
heard only in spring, is rich and mellow, much like the English
Blackbird’s: he sits in some thick tree, or wood, particularly at earliest
dawn, and pours forth his clear notes in a broken strain, and often in
a subdued tone, as if singing only to please himself.
I happened to wound slightly two of these birds on the same day,
which I placed in a cage. They were free and easy from the first, very
clamorous, lively and even headlong in their sudden movements. I
found that they would seize and devour with eagerness
cockroaches, hard beetles, worms, and even small lizards. I gave
them a bunch of the ripe, but dry and insipid, berries of a species of
ficus, which they readily picked off and ate. The fruit of this fig they
are fond of in a state of freedom; and such is their impudence that
they prevent the Baldpate Pigeons, though so much bigger, from
partaking. The Baldpates would willingly eat the little figs also, but
the Hopping Dicks scream and fly at them, and peck their backs, so
as to keep them fluttering from branch to branch, reluctant to depart,
yet unable to eat in comfort.
At the break of day, if we pass along a wooded mountain road,
such as that lonely one at Basin-spring, in Westmoreland,
particularly when the parching winds called norths have set in, in
December and January,—we see the Hopping Dicks bounding singly
along the ground in every part; but during the day they resort in
numbers to the diminished springs and ponds which yet remain,
where, after quenching their thirst, they enjoy the luxury of a bathe.
In the high mountains behind Spanish Town, this bird is called the
Twopenny chick; but in the parishes of Westmoreland and St.
Elizabeth, I have heard him distinguished only by the homely
appellation which I have adopted. He is not confined to any particular
locality. Dr. Chamberlaine (Jam. Alm.) has “never seen him in the
lowlands.” But around Bluefields he is abundant, especially in the
little belt of wood that girds the sandy sea-beach at Belmont, where
one may meet with him at all times. In the pastures of Mount
Edgecumbe he is no less common. In the highest districts, as
Bluefields Peaks, though I have sometimes seen him, he is chiefly
represented by his congener, the Glass-eye: in the solitudes of
Basin-spring, a lower elevation, both species are numerous.
In some “Contributions to Ornithology,” by Dr. Richard
Chamberlaine, published in the Companion to the Jamaica
Almanack for 1842, this bird is described. The following observations
are there quoted from a letter of Mr. Hill’s to the Doctor:—“I paid a
visit the other day to the Highgate mountains, a district in which our
native Ouzel, the Hopping Dick, is exceedingly abundant. On asking
one morning the name of the bird, whose clear, mellow-toned whistle
I was then listening to, a negro told me it was the Hopping Dick, and
that they ‘always hear him when the long days begin.’ The long days
had not yet begun; but at early dawn, while the distant horizon was
seen but faintly gleaming through the dull grey break of daylight, and
many of these Merles were gliding from one thicket to another, and
dashing across the road with that bounding run from which they
derive their sobriquet of Hopping Dick, one bird anticipated the
season of song, by repeatedly sounding two or three cadences of
that full deep whistle with which he salutes the lengthening year.
“The forests skirting the mountain are his favourite haunt. If he
frequents the open slopes and crests of the hills, he glides from tree
to tree, just above the surface of the grass. If he rises above the
lower branches of the pimento, or into some of the loftier shrubs, it is
to visit the Tillandsias, or parasitical wild-pines, to drink from within
the heart-leaves at those reservoirs of collected dews which are the
only resource of the birds in these high mountains. His dark sooty
plumage, his brilliant orange bill, and his habit, when surprised or
disturbed, of escaping by running or flying low, and sounding all the
while his alarm scream till he gets away into the thicket, completely
identify him with the European Blackbird.
“It was in the month of July, in 1834, that I first heard the song of
this Ouzel, which I would call Merula Saltator, as this name
preserves his distinctive sobriquet of Hopping Dick, and refers to his
characteristic length of legs, both at the tarsus and the thighs. The
shock of an earthquake had wakened all the living tenants of the
plantation at which I was staying, when the voice of this bird, as the
alarm lulled into silence, was heard from a small coppice of cedar-
trees, clear and mellow. Though it was less varied than the song of
the European Blackbird, it was very much like its tones when it is
heard over distant fields in a summer’s morning. I had been apprised
that I should hear it there, for it had sung in that grove daily at that
season for three or four years; and though under the disadvantage of
being an anticipated song, it was a very agreeable recognition of the
melody of the European bird.
“The next time I heard his music was in the month of May, 1836, in
the same mountains. The rains of the season had terminated, or only
mid-day showers fell, the mornings and evenings being refreshing
and brilliant It was now not a single one of these birds that I heard
singing lonely in a sequestered cluster of trees, but a hundred of
them far and near, blending their voices together, or vying with each
other in rivalry of song. My frequent weekly journeys in these
districts, from this period to the end of August, were always cheered
by this simultaneous outburst of melody from the Merula saltator.”
I found a nest of this bird one day in the middle of August; it was
affixed to the highest perpendicular limb of a rather tall pimento in
Mount Edgecumbe, and consisted of a rude cup formed of the
slender roots of pimento, and placed on a platform of leaves and
small twigs. It contained two young, almost fledged, which flew to the
ground before they could be seized,—and one abortive egg. The
young displayed the plumage of the adult, even to the white webs on
the two coverts; but the eyes were dark greyish-brown, the beak
blackish, and the feet, dull, horny yellow. The egg measures 1⁴⁄₁₀
inch: by ⁹⁄₁₀: it is white, thickly splashed with dark and pale reddish-
brown. Sometimes, as I have been informed, a decaying stump is
selected, or any other convenient hollow, into which the bird carries
“plantain trash,” or similar materials, and forms a rude nest, laying
three or four eggs. And Mr. Hill gives me a statement of a locality
which is intermediate between these; observing, “A friend of mine
found the nest of a Hopping Dick. It was built amid the dry leaves
that had lodged within the forks of a low branch of a mango-tree. It
was a structure of small sticks, loosely woven, in the centre of which
the young birds nestled among dried foliage.”
GLASS-EYE.[29]
Shine-eye.—Fish-eye.

Merula Jamaicensis.
Turdus Jamaicensis, Gm.—Lath. Ind. Or. i. 328.
Merula leucophthalma, Hill.

[29] Length 8½ inches, expanse 14, flexure 4⁹⁄₁₀, tail 3¼, rictus 1¹⁄₁₀,
tarsus 1½, middle toe 1¹⁄₁₀. Irides bluish white, somewhat pellucid; feet
dark horn, soles yellowish; beak black, basal half of lower mandible
sometimes yellow. Whole head dark umber-brown, except on the chin,
where it is speckled with white. Back blackish ash, tinged with brown on
wing-primaries: tail blue-black. Breast and sides dusky ash, silky;
separated from the brown of the head by a narrow transverse band of
pure white: belly silky white; under tail-coverts black, with broad white
tips. Sexes alike in plumage and size. Intestine 12 inches; two cæca ¼
inch long, slender.

This is exclusively a mountain bird; inhabiting the very same


localities, and subsisting on the same food as the Solitaire, presently
to be described; the pulpy berries of a Scrophularious shrub, which
the negroes thence call Glass-eye berry. I have never found any
animal substance in the stomach of this species, numbers of which I
have examined; one in December contained many of the little scarlet
figs, from the tree on which I shot it: in February the green pimento-
berries are devoured by them; and later in the spring, it appears, the
shining fruit of the Sweetwood (Laurus) is attractive to them. On the
30th of March, my lad shot a male Glass-eye by the road-side at
Cave, scarcely a stone’s throw from the sea, and level with it; the
stomach contained the berries of this Laurus, which is abundant just
there. This is the only instance in which I ever heard of the species,
except in a mountain locality.
The common names of this bird are bestowed in allusion to the tint
of the iris of the eye: this, as Mr. Hill observes, “is not absolutely
white, but so transparently suffused with a hue of olive, that the eye
has the look of very common glass.”
The figure, attitudes, and motions of the Glass-eye are those of its
fellow, the Hopping Dick; it is, however, much more recluse, and
jealous of being seen. The dashing manner of flight across the
narrow wood-paths are the same in both birds, but the loud and
startling tones of the lowland bird are wanting in this. The Glass-eye
has but one note that I have heard; a single low “quank,” frequently
repeated as he hops from bush to bush, or plunges into the thicket.
Dr. Chamberlaine attributes to him “the same loud sonorous chirp as
he stealthily scuds from one dark recess of the forest to another;” but
I should think him mistaken, were it not that Robinson, who gives a
very correct drawing of the species by the name of Turdus capite
ferrugineo, and describes it as common in the Liguanea mountains,
affirms that “it whistles like our English Blackbirds.” (MSS.)
The Woodthrush of Wilson, (Turdus mustelinus, Gm.,) a delightful
songster, is a regular annual visitor in the neighbourhood of Spanish
Town, but I have not seen it.

MOCKING BIRD.[30]
“Nightingale.”

Mimus polyglottus.
Turdus polyglottus, Linn.—Aud. pl. 21.
Mimus polyglottus, Boie.
Orpheus polyglottus, Sw.

[30] Length 10 inches, expanse 13, flexure 4¼, tail 4¼, rictus 1, tarsus
1⁴⁄₁₀ middle toe 1. Intestine 8 inches, two minute, rudimentary cæca.

One of the very commonest of birds in Jamaica, bold and forward


in his manners, inviting rather than avoiding notice, of striking though
not showy colours, the Mocking-bird would be sure to attract the
attention of a stranger, even were he destitute of those unrivalled
powers of song that have commanded the praise of all auditors. The
faculty of imitating the voices of other birds, which has given to this
species its ordinary appellation, has been ably described by Wilson
and others, as well as the variety of notes, apparently original, which
it commands. The former has often caused me no small
disappointment; hearing the voice of, as I supposed, some new bird,
or some that I was in want of, I have found, after creeping cautiously
and perhaps with some difficulty to the spot, that it proceeded from
the familiar personage before us. With respect to the latter, I have
been assured by an observant friend, George Marcy, Esq., of the
Kepp, that he, on one occasion, counted no less than eighteen
different notes, proceeding from a Mocking-bird perched on a tree in
his garden.
It is in the stillness of the night, when, like his European
namesake, he delights

“—— with wakeful melody to cheer


The livelong hours,”

that the song of this bird is heard to advantage. Sometimes, when,


desirous of watching the first flight of Urania Sloaneus, I have
ascended the mountains before break of day, I have been charmed
with the rich gushes and bursts of melody proceeding from this most
sweet songster, as he stood on tiptoe on the topmost twig of some
sour-sop or orange tree, in the rays of the bright moonlight. Now he
is answered by another, and now another joins the chorus, from the
trees around, till the woods and savannas are ringing with the
delightful sounds of exquisite and innocent joy. Nor is the season of
song confined, as in many birds, to that period when courtship and
incubation call forth the affections and sympathies of the sexes
towards each other. The Mocking-bird is vocal at all seasons; and it
is probably owing to his permanency of song, as well as to his
incomparable variety, that the savannas and lowland groves of
Jamaica are almost always alive with melody, though our singing
birds are so few.
“It is remarkable,” observes Mr. Hill, “that in those serenades and
midnight solos, which have obtained for the Mocking-bird the name
of the Nightingale, and which he commences with a rapid
stammering prelude, as if he had awaked, frightened out of sleep, he
never sings his songs of mimicry; his music at this time is his own. It
is full of variety, with a fine compass, but less mingled and more
equable than by day, as if the minstrel felt that the sober-seeming of
the night required a solemnity of music peculiarly its own. The night-
song of the Mocking-bird, though in many of its modulations it
reminds us of that of the Nightingale of Europe, has less of volume in
it. There is not more variety, but a less frequent repetition of those
certain notes of extacy, which give such a peculiar character, and
such wild, intense, and all absorbing feeling to the midnight song of
the European bird. Though the more regulated quality of the song of
our Nightingale is less calculated to create surprise, it is the more
fitted to soothe and console; and that sensation of melancholy which
is said to pervade the melody of the European minstrel, is
substituted in the midnight singing of our bird by one of thoughtful
and tranquil delight.”
The nest of the Mocking-bird is not so elaborate a structure as that
of many birds. It is built with little attempt at concealment in some
bush or low tree, often an orange near the dwelling-house. One now
before me, was built in a bunch of plantains. It consists of a rude
platform of loose twigs, in which are interlaced many shreds of old
rags; this frame supports and encloses a rather neat cup, composed
entirely of fine fibrous roots. Another has the frame almost wholly of
rags, from canvas to lace; and the cup of thatch-threads, and horse-
hair. Three eggs are commonly laid, measuring ¹⁹⁄₂₀ by ⁷⁄₁₀ inch, of a
pale bluish-green, dashed with irregular blotches of pale reddish-
brown: they are not perfectly regular in form, their oval having more
or less tendency to a cylindrical shape, rather abruptly flattened at
the ends. When young are in possession, their presence is no
secret; for an unpleasant sound, half hissing, half whistling, is all day
long issuing from their unfledged throats; delightful efforts, I dare say,
to the fond parents. At this time the old birds are watchful and
courageous. If an intruding boy or naturalist approaches their family,
they hop from twig to twig, looking on with outstretched neck, in mute
but evident solicitude; but any winged visitant, though ever so
unconscious of evil intent, and though ever so large, is driven away
with fearless pertinacity. The saucy Ani and Tinkling instantly yield
the sacred neighbourhood, the brave Mocking-bird pursuing a group
of three or four, even to several hundred yards’ distance; and even
the John-crow, if he sail near the tree, is instantly attacked and
driven from the scene. But the hogs are the creatures that give him
the most annoyance. They are ordinarily fed upon the inferior
oranges, the fruit being shaken down to them in the evenings; hence
they acquire the habit of resorting to the orange-trees, to wait for a
lucky windfall. The Mocking-bird feeling nettled at the intrusion, flies
down and begins to peck the hog with all his might:—Piggy, not
understanding the matter, but pleased with the titillation, gently lies
down and turns up his broad side to enjoy it; the poor bird gets into
an agony of distress, pecks and pecks again; but only increases the
enjoyment of the luxurious intruder, and is at last compelled to give
up the effort in despair.
In St. Domingo the Mocking-bird is no less common than in
Jamaica: it is there called by the French inhabitants Rosignol, which
is but a modification of Rosignor, or lord of the rose, the Spanish
name of the Nightingale, probably of Moorish origin.

BLACK-CHEEKED YELLOW-THROAT.[31]
Maryland Yellow-throat. Wils.

Trichas Marylandica.
Turdus trichas, Linn.
Sylvia trichas, Lath.—Aud. pl. 23.
Trichas Marylandica, Sw.

[31] Length 5 inches, expanse 7, flexure 2⁴⁄₁₀, tail 1⁹⁄₁₀, rictus ⁶⁄₁₀, tarsus
⁹⁄₁₀, middle toe ¹³⁄₂₀.

We have now arrived at an extensive group of birds of small size,


and delicate form, mostly known by the name of Warblers. All of
them are merely winter visitants in Jamaica, the greater number

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