Macro Chapter 17

In 2013, the U.S. federal government received about ______ in tax revenue

$2.8 trillion

Since the mid-1950s, federal government taxation has been about _____ of GDP

18%

If tax rates are 10% on income up to $10,000, 20% for income between $10,001 and $20,000, and 30% for income over $20,000, the marginal tax rate for a person earning $25,000 is:

30%

In 2013, the US federal budget deficit was about ______ of GDP

6% of GDP

The Social Security system is becoming: A. less generous B. more generous C. more profitable D. more reliable

A. less generous

Social Security taxes account for the largest source of U.S. federal government receipts today. True or False

False

The U.S. federal income tax system is regressive:

False

The purpose of FICA taxes is to fund:

Social Security payments

What demographic change in the U.S. will cause government spending to increase in the next 50 years?

The population older than 65 will grow.

Which of the following is an example of a progressive tax system?

U.S. federal income tax

About one-quarter of the total U.S. national debt is held by:

agencies in the federal government

What is the difference between deceit and national debt?

deficit debt us the annual difference between federal spending and revenues. National debt is all federal debt held outside the US gov

Income that is not subject to taxation is called:

exempt income

Which of the following sources of tax revenues make up more than 90% of all government revenue?

individual income tax, corporate income tax, and Social Security and Medicare taxes

The tax rate paid on an additional dollar of income is called the:

marginal tax rate

The U.S corporate income tax rate is:

one of the highest in the world

Which country spends the most on military?

the U.S.

Social Security and Medicare primarily transfer wealth to:

the elderly

Together, Social Security, defense, Medicare, and Medicaid make up approximately _____ of the US federal budget.

two-thrids