Unit 7: Fiscal Policy Vocabulary

Unit 7: Fiscal Policy Vocabulary

Multiple Choice

A tax system where the tax rate increases as taxable income rises, meaning higher-income individuals pay a larger percentage of their income in taxes. (the rich pay more)

• Proportional Taxation

• Regressive Taxation

• Progressive Taxation

• Taxation

Multiple Choice

An income tax system that applies the same percentage tax rate to all individuals, regardless of their income level, often referred to as a flat tax.

• Proportional Taxation

• Regressive Taxation

• Progressive Taxation

• Taxation

Multiple Choice

A tax system where the average tax burden decreases as income increases, resulting in lower-income individuals paying a higher percentage of their income in taxes. (the poor pay more)

• Proportional Taxation

• Regressive Taxation

• Progressive Taxation

• Taxation

Multiple Choice

A financial situation where government expenditures exceed revenue, resulting in a shortfall.

• Budget Shortfall

• National Debt

• Budget Surplus

• Budget Deficit

Multiple Choice

A financial situation where government revenue exceeds expenditures, resulting in excess funds.

• Budget Shortfall

• National Debt

• Budget Surplus

• Budget Deficit

Multiple Choice

The total amount of money that the federal government has borrowed to cover its expenditures over time.

• Budget Shortfall

• National Debt

• Budget Surplus

• Budget Deficit

Multiple Choice

Government spending that is not mandated by law and can be adjusted through the annual budget process, such as funding for education and defense.

• Discretionary Spending

• Mandatory Spending

• Budget Deficit

• Budget Surplus

Multiple Choice

Government spending that is required by law, including programs like Medicare, Medicaid, and Social Security.

• Discretionary Spending

• Mandatory Spending

• Budget Deficit

• Budget Surplus