Unit 4/5 Quiz 1 Government Spending/Revenue

When a government it spending more money than it is making, it is operating in a...

• deficit

• surplus

• IOU

• interest

Which of the following NOT considered mandatory spending?

• medicare

• national parks

• Assistance for low-income families

• social security

This is the top source of revenue for the federal government.

• individual income taxes
• corporate income taxes
• customs duties
• FICA

The individual income tax in the U.S. is 

• progressive
• regressive
• proportional

Tax on a corporation's income for a year

• Corporation income tax.

• Excise tax

• income tax.

• Estate tax

Progressive taxes......

• Are a fixed percentage for all people

• tax percentages increase as a persons income increases

• tax percentages increase as a persons income decreases

Interest on debt is considered

• mandatory spending

• discrectionary spending

The government borrows money to cover any deficits it runs by

• borrowing money from banks

• borrowing money from the federal government

• issuing bonds

The difference between the national debt and a federal budget deficit is

• nothing; the national debt and the budget deficit are the same thing.

• the national debt is financed primarily through government bonds, while the deficit is financed through taxes.

• the federal budget deficit represents the total amount of outstanding government debt while the national debt includes only the increase in the debt during the current year.

• the national debt represents the total of all budget deficits and surpluses, while the federal budget deficit reflects only the additions to the debt during the current year.

A _______tax system, or a ______ tax system, assesses the same tax rate to taxpayers regardless of income or wealth.

• progressive, flat
• proportional, flat
• regressive, proportional