Economy Public Financing Questions

A budget _______ occurs when a government receives less revenue than it's been in any given fiscal year

Deficit

The national debt is the accumulation of ________ and __________ over time

Deficit & Surplus

Budget _______ are calculated and reported on an annual basis

Deficits

The sir plus and deficit is a ________ because we measure the surplus or deficit at each fiscal year. National debt is a _________ showing how much the government owes at a particular point in time

Flow Stock

If the government had no national debt, it would not have to make ________ payments, and other things could be done with these funds

Interest

Generally, the budget deficit is calculated and reported ________, and the national debt is the accumulation of budget _______

Annually Deficits

A budget is _________ when the government revenue equals what the government spends in any given fiscal year

Balanced

Flow

Is the change to the stock of that something over a period of time

Sales taxes are __________ in that the tax rate falls as the amount taxed rises

Regressive

What is the state government level main source of income

Sales and excise taxes State individual and corporate income taxes

Interest on the national debt is a major expenditure for the federal government, which indicates that the federal government

Spends more than it receives and revenue, forcing it to borrow to finance it's deficits

A _______ denotes the total level or amount of something at a particular point in time. On the other hand, a __________ is the change to the stock of that something over a period of time

Stock Flow

Because it places the deficit and better context and allows a comparison across time or across governments from different countries most economists prefer measuring the deficit

relative to GDP

At the Federal government level, the main sources of income are

Payroll taxes and social insurance and retirement receipts

State governments been revenue mainly on

1. Infrastructure 2. Public welfare programs 3. Health 4. Education

What 4 areas does federal spending concentrates on?

1. Interest on the national debt. 2. National defense 3.Health 4. Pension and income security.

The three types of taxes include

1. Proportional 2. Regressive 3. Progressive

In choosing which type of text to use, a government takes into consideration many factors, typically including two

1. fairness 2. Ease with which taxes can be collected

An opportunity cost is associated with the interest payments made on the national _______

Debt

Stock

Denotes the total level or amount to something at a particular point in time

Which is not an area of most federal spending

Education

A budget is balanced when the government revenue _______ what the government spends in any given fiscal year

Equals

In the circular flow model, how does government use net taxes

Households and firms received transfer payments and subsidies from the government

Ones that firms pay for resources our cost to firms, but they represent which of the following types of flow two households?

Income

If the demand for loanable funds increases, interest rates _______, which can have a big effect on consumers

Increases