Chapter 25

What occurs when spending equal revenue?

A balanced budget

What occurs when the government spends MORE than it collects in revenue?

A deficit

What occurs when the government spends LESS than it collects in revenue

A surplus

Authorizes the governor to spend money for a designated activity

Appropriations bill

When passed by congress, what becomes a law that authorizes spending for a particular activity

Appropriations bills

Occurs when government revenue equals spending

Balanced budget

When the government borrows money

Bonds

___ are contracts to repay borrowed money with interest at a specific time in the future

Bonds

Governments plan for how it will raise and spend money

Budget

Which term describes the blue print of how the government will raise and spend money?

Budget

Total revenues and spending for the year and sets spending targets for various categories

Budget resolution

What document total revenue and spending for the year and sets targets for how much will be spent in various categories?

Budget resolution

Borrowed money that has not been paid

Debt

____ is money that has been borrowed but not yet repaid

Debt

Occurs when government spending exceeds the collected revenue

Deficit

Government expenditures that must me authorized each year

Discretionary spending

What government expenditures must be authorized each year?

Discretionary spending

Provides health, nutritional, or income payments to some people

Entitlement programs

Which program provides health, nutritional, or income payments to people meeting certain eligibility requirements?

Entitlement programs

Federal revenue tend to go up during bad economic times(T/F)

False

Mandatory spending must be authorized each year. (T/F)

False

Property taxes are collected on real property, but not personal property T/F)

False

Sales tax is an example of a progressive tax(T/F)

False

The federal government is required by law to have a balanced budget(T/F)

False

The largest category of expenditure for local governments is police and fire protection (T/F)

False

A 1-2 month period that may not coincide with the calendar year

Fiscal year

A ___ is a 12 month period that may or may not match the calendar year

Fiscal year

What would you do with the governments fiscal policy in order to reduce the national debt?

I would decrease taxes

Money paid to one level of government by another level

Intergovernmental revenues

____ spending does NOT need annual approval

Mandatory

Spending that does NOT need approval

Mandatory spending

Pays some health care cost of elderly people

Medicare

Which program pays some health care cost of elder people?

Medicare

____ are deducted from a workers paycheck to fund social security Medicare

Payroll taces

Funding for social security and Medicare deducted from payroll taxes

Payroll tax

Tax paid on land and houses by the people that own them

Property tax

What is the tax that people pay on the land on the house they own?

Property tax

______ revenue is money that one level of government receives from another level

Property tax

____ tax is levied by the states on the purchase of most products

Sales

Tax levied on the purchase of most products

Sales tax

Government program providing money to people who are retired or disabled

Social security

Which government program provides money to people who are disabled or retired?

Social security

When a government, business, or individual pays for part of the cost for something

Subsidize

States ___, or pay part of the cost of, a college education for resident students

Subsidized

Occurs when spending is LOWER then revenues

Surplus

_____ are annual reports to the government that calculate the tax that workers must pay for incomes

Tax return

Filed by workers to indicate how much must be paid in taxes

Tax returns

A fund balance is a government savings account from which a state's deficits can be paid(T/F)

True

Discretionary spending makes up about one- third or the federal budget (T/F)

True

Income tax supplies nearly half of all the federal government's revenue(T/F)

True

Intergovernmental revenue is the largest source of income for state and local government (T/F)

True

The cost of entitlement programs programs tend to go up during a recession (T/F)

True

Unemployment insurance programs are one example or automatic stabilizers(T/F)

True