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
