The Public Sector

Taxes are payments made to the government on a variety of sources. Which of these can be taxed?

• income

• business profits

• general purchase of goods and services

Revenue is the money that the government brings in for use on government expenditures. The term used to define the source of revenue is

• tax base

• revenue base

• money base

• money stream

A percentage of money taken from individuals or businesses is referred to as

• property tax

• excise tax

• income tax

• sales tax

A tax that takes a higher percentage of money from higher incomes is what type of tax?

• sales tax

• progressive tax

• proportional tax

• regressive tax

Government programs that provide people with services as long as they qualify are referred to as

• mandatory spending

• entitlements

• discretionary spending

• appropriations

A transfer payment is one in which the government

• directly purchases goods and services

• provides states or local governments with money for things like education, infrastructure, etc.

• loans given to foreign countries for a variety of reasons

• money given to people that do not provide goods or services, such as Social Security checks

The fiscal year for the US government runs

• January-December

• February-January

• October-September

• July-June

When the government spends more money than it receives in revenue, it is referred to as

• debt

• deficit

• national debt

• banrupt

Money that is set aside for a specific purpose, such as defense spending, is called

• appropriations

• transfer payments

• grants-in-aid

• discretionary spending

Money that is given to states to cover expenses like roads, education, and healthcare is

• appropriations

• grants-in-aid

• discretionary spending

• mandatory spending