Federal Government Revenue and Expenditure Summative

Which of the following is the biggest source of revenue for the federal government?

• Property taxes

• Sales taxes

• Individual income taxes

• Estate taxes

Social Security and Medicare are examples of what type of federal expenditure?

• Mandatory spending

• Discretionary spending

• Emergency spending

• Overseas spending

Which of the following is NOT typically a major source of revenue for the federal government?

• Corporate income taxes

• Payroll taxes

• Excise taxes

• Property taxes

Interest on the national debt is categorized under which type of federal expenditure?

• Mandatory spending

• Discretionary spending

• Emergency spending

• Overseas spending

What is a primary way for the federal government to finance deficits when its expenditures exceed revenues?

• Borrowing money by issuing Treasury securities

• Printing more currency

• Increasing taxes

• Selling public lands

Federal grants to states for programs like Medicaid are an example of what type of expenditure?

• Mandatory spending

• Discretionary spending

• Emergency spending

• Overseas spending

What is a common method used by the federal government to reduce deficits?

• Increasing spending

• Lowering interest rates

• Cutting spending

• Expanding social programs

The federal government generates revenue from tariffs primarily imposed on what?

• Imported goods

• Luxury items

• Agricultural products

• Services

Which type of federal expenditure can be adjusted through annual appropriations by Congress?

• Mandatory spending

• Discretionary spending

• Emergency spending

• Overseas spending

What is considered a major driver of long-term federal spending related to health care for the elderly?

• Medicare

• Medicaid

• CHIP

• VA healthcare