PLQ19 & HW19
Which of the following is the percentage of annual US government spending allocated to foreign aid?
1%
In 2009, the U.S. government spent $1.4 trillion more than it collected in taxes. This deficit was about:
10% of the size of the U.S. GDP in 2009
A government collects $70 billion quarterly in tax revenue. Each year it allocates $15 billion to the justice system and $29 billion for the administrative costs. What percentage of its total annual tax revenue is left for allocation to the remaining categories of government spending?
84.29%
What do goods like gasoline, tobacco, and alcohol typically share in common?
They are all subject to government excise taxes
The federal government levies _____________________________ on people who pass assets ____________________________, either after death or during life.
an estate and gift tax; to the next generation
A ______________________ means that government spending and taxes are equal.
balanced budget
In 2010, Microsoft will pay corporate income tax to the federal government based on the company's __________________.
corporate profits
Which of the following terms is used to describe the set of policies that relate to government spending, taxation, and borrowing?
fiscal policies
A __________________________ policy will cause a greater share of income to be collected from those with high incomes than from those with lower incomes.
progressive tax
If government tax policy requires Bill to pay $20,000 in taxes on annual income of $200,000 and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is:
proportional
A ________________________________ is calculated as a flat percentage of income earned, regardless of level of income.
proportional tax
If South Dakota's governor reports a budget surplus in 2011, that state government likely:
received more in taxes than it spent in that year
If government tax policy requires Peter to pay $15,000 in tax on annual income of $200,000 and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is:
regressive
A ______________________ is created each time the federal government spends more than it collects in taxes in a given year.
budget deficit
When the government passes a new law that explicitly changes overall tax or spending levels, it is enacting:
discretionary fiscal policy
If a government reduces taxes in order to increase the level of aggregate demand, what type of fiscal policy is being used?
expansionary
If a country's GDP increases, but its debt decreases during that year, then the country's debt to GDP ratio for the year will _______________ in proportion to the magnitude of the changes.
increase or decrease