Unit 4 Business and Government Review

A plan for spending money that balances income with spending and shows how money will be spent is ___.

• a surplus.

• an expenditure.

• a budget.

• a deficit.

This diagram shows a government's approach to taxing and spending. Which of the following would be a good title for this diagram?

• Government Spending

• The National Economy

• The Federal Debt

• Fiscal Policy

When a government creates a budget, it is seeking a way to ___.

• spend as much revenue as possible.

• cut spending to a bare minimum.

• return as much money to taxpayers a possible.

• allocate money to programs and projects.

What is the main goal in creating the federal budget?

• Managing businesses and increasing spending on all programs.

• Deciding how to manage the government's tax revenue and expenditures.

• Finding a way to allow the economy to run on its own.

• Finding a way to slow down rapid economic growth.

When revenues are higher than expenditures in a budget, that budget ___.

• shows a deficit.

• is in balance.

• must be discarded.

• shows a surplus.

What does deficit spending require a government to do?

• Lay-Off Workers

• Cut Taxes

• Take On Debt

• Hire More Workers

The graph shows the federal budget from 1980 to 2010. What conclusions can be drawn from this graph?

• Federal law requires the budget to be balanced.

• Republicans do a good job in balancing the budget.

• In most years, the federal budget shows a surplus.

• The federal budget is usually unbalanced.

The graph shows the federal budget from 1980 to 2010. In which period did the federal budget show the greatest deficit?

• 1980-1990

• 1980-2000

• 1990-2000

• 2000-2010

Governments collect taxes to ensure that ___.

• there is sufficient money to fund private businesses.

• citizens contribute to meeting society's needs.

• politicians get paid in a timely manner.

• a government program exists for every need that arises.

What gives the United States government the power to collect taxes?

• The Constitution

• Laws passed by Congress

• An Executive Order

• Common Law