Federal Budget

Which is an example of an uncontrollable expenditure?

• defending our country from terrorists

• paying interest on debts

• borrowing from retirement funds

• keeping the environment clean to protect our lives

• all of the above

If you are paying ______ you are in trouble because you are paying interest on what you borrowed and interest on the interest you agreed to pay to borrow the money.

• income tax

• a balanced budget

• compound interest

• progressive taxes

Some companies that have opened businesses overseas instead of in America have cited_______as reasons for leaving

• corporate taxes

• income taxes

• compound interest

• flat taxes

The federal government levies a tax on personal income to provide for 

• national defense and law enforcement
• veterans and foreign affairs
• social programs like food and housing assistance and college grants
• All answers shown

This month Michael’s expenses are greater than his income. What are two actions Michael can take in order to balance his budget?

• Increase expenses and decrease income

• Decrease expenses and decrease income

• Decrease expenses and increase income

• Increase expenses and increase income

If we decide to go to Top Golf over Spring Break, it would be considered a __________.

• Mandatory Expense

• Corporate Tax

• Discretionary Expense

• Uncontrollable Expenditure

Serena makes $100,000 a year and pays 41% income taxes while Tom makes $55,000 a year and pays 37% income taxes. This is an example of what type of tax?

• Progressive

• Regressive

• Proportional

• Flat

A sale tax that is the same for both rich and poor people is typically considered a...

• regressive tax

• progressive tax

• proportional tax

• fair tax

In country A, everyone pays a 10% income tax. This type of tax system is known as

• flat

• Progressive

• Regressive

• fair

What are those items of the national budget that must be funded?

• Mandatory

• Discretionary

• Planned

• Defense