ECO 105 - Ch. 30 Quiz

A ______________________ is created each time the federal government spends more than it collects in taxes in a given year. a. budget deficit b. budget surplus c. corporate tax d. regressive tax

a. budget deficit

If South Carolina's governor reports a budget surplus in 2021, that state government likely: a. received more in taxes than it spent in that year. b. increased the proportional tax level. c. equalized spending and taxes in that year. d. increased the corporate income tax rate.

a. received more in taxes than it spent in that year.

A ______________________ means that government spending and taxes are equal. a. fiscal budget b. balanced budget c. contractionary fiscal policy d. discretionary fiscal policy

b. balanced budget

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: a. budget deficit. b. budget surplus. c. decrease in payroll tax. d. decrease in proportional taxes.

b. budget surplus.

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. an increase in payroll tax. b. an increase in excise tax. c. a budget surplus. d. a budget deficit.

d. a budget deficit.