Basic Economics: Debt, Deficit, Supply, Demand, Price

When the amount of money the government brings in is less than the amount it spends.

• spending

• revenue

• deficit

• debt ceiling

The total amount the government has borrowed and now owes back to investors.

• debt

• surplus

• deficit

• revenue

If SUPPLY goes down and DEMAND stays the same, prices will

• Increase

• Decrease

• Stay the same

If the government hands out free money to everyone,

• less money will be in circulation.

• the debt ceiling will increase.

• more money will be in circulation.

• the deficit will shrink.

ACTIVITIES or ASSISTANCE that a person or company provides.

• demand

• markets

• goods

• services

Where is the government supposed to get the money to do all the things we ask of it?

• From the gold we have saved in our treasury.

• From the the profits it earns making and selling goods.

• From the collection of taxes.

• It doesn’t need to get money anywhere; it just does the things when it wants to.

If SUPPLY goes up and DEMAND goes down, prices will

• Increase

• Decrease

• Stay the same

Debt is an accumulation, a building up over the years.

• True

• False

The “debt ceiling”

• Is the same thing as the deficit

   

• Is the maximum amount of debt the US government is allowed to have

• Can never change

• Is always the current total accumulation of debt

This Executive Department develops and executes policy on farming and food.

• Department of Housing & Urban Development

• Department of Education

• Department of Agriculture

• Department of Health & Human Services