Module 10 Fiscal Policy Lab A

A government collects $700 billion annually in tax revenue. Each year it allocates $130 billion to interest payments that it must pay on its accumulated debt. What percentage of annual tax revenue is allocated to make these interest payments?

18.57%

A government annually collects $230 billion in tax revenue and allocates $70 billion to military spending. What percentage of this government's budget is spent on its military?

30.43%

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.

If the government for the state of Washington collects $65.8 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be:

a budget deficit.

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

A ______________________ is created each time the federal government spends more than it collects in taxes in a given year.

budget deficit

If the state of Washington's government collects $75 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be a:

budget surplus.

If individual income tax accounts for more total revenue than the payroll tax in the U.S., why would over half the households in the country pay more in payroll taxes than in income taxes?

income tax is a progressive tax

If government tax policy requires Jane to pay $25,000 in taxes on annual income of $200,000and Mary to pay $10,000 in tax on annual income of $100,000, then the tax policy is:

progressive.

If government tax policy requires Bill to pay $20,000 in taxes on annual income of $200,000and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is:

proportional.

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 $200,000and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is:

regressive.