Government and Taxes

Capitalism is based on the _______ ownership of wealth.

• private
• public

Burger King and McDonalds keep their prices low because of

• Competition
• Property Rights
• Limited Role of Government
• Freedom of Enterprise

How would a free market economy be described?

• An economy in which decisions are made by the government.
• The international exchange of goods.
• An economy based on supply and demand with little or no government control
• An economy that is communist

Money that Congress is MANDATED or required by existing law to spend on certain programs or to use for interest payment on the national debt.

• mandatory spending

• discretionary spending

• entitlements

• tariffs

Spending about which lawmakers are free to make choices, such as defense and education

• mandatory spending

• discretionary spending

• entitlements

• tariffs

an estimate of future revenues and expenses.

• budget

• real property

• personal property

• tax exempt

budget in which revenue equal to spending

• budget

• operating budget

• capital budget

• balanced budget

What are those areas of the National Budget that can but do not have to be funded?

• Mandatory
• Discretionary
• Revenue
• Defecit

What are the sources of income for the national government called

• surplus
• revenue
• appropriation

What means the government has spent more than it has raised

• revenue
• surplus
• defecit
• appropriations