Government Finances

Each year the president and Congress have to agree on a plan for spending called a ________.

• revenue

• progressive tax

• budget

• regressive tax

______ provides government money to people who are retired or disabled.

• social security

• medicare

• appropriations bills

• proportional taxes

A(n) ______ is usually levied on consumer purchases of almost all products.

• property tax

• entitlement

• education tax

• sales tax

The government borrows money by selling _________.

• deficits

• bonds

• entitlement programs

• appropriations

The federal income tax is a progressive tax, which means the _______.

• tax rate increases as income increases

• tax rate decreases as income increases

• tax rate decreases as income decreases

• tax rate and income are not related

A portion of the federal budget each year pays for the interest on _________.

• money lent to Great Britain

• money collected in taxes

• money spent on scientific research

• money borrowed by the government

The largest source of revenues for local governments are ___________.

• property taxes

• intergovernmental revenues

• local income taxes

• fines and fees

Which of the following is funding that state governments are NOT responsible for?

• welfare and health programs

• universities and colleges

• interstate highway maintenance

• water supplies and sewers

Managing the nation's fiscal policy _______.

• requires the president and Congress to work together

• is left entirely to Congress

• is voted on by the people of Washington, DC

• must be approved by the Supreme Court

The best financial situation for the United States is to have _________.

• deficits exceed surpluses

• surpluses exceed deficits

• deficits exceed revenues

• deficits and surpluses to be equal