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