Eco 10.3 pages 277-283

How many times has the federal budget shown a surplus in the past 45 years?

• Five times
• Ten times
• Seven times
• Three times
• Nine times

In what year did the first federal budget surplus occur?

• 1969
• 1972
• 1955
• 1981
• 1990

Between which years did the last four federal budget surpluses occur?

• 1998 to 2001
• 2000 to 2003
• 1995 to 1998
• 1990 to 1993
• 1988 to 1991

What has been the effect of federal budget deficits in most years?

• Increased government debt
• Reduced government spending
• Increased tax revenues
• Reduced national debt
• Eliminated borrowing

How much debt has been added since 2001?

• More than $2 trillion
• Less than $500 billion
• Exactly $1 trillion
• About $3.5 trillion
• $500 million

What is the approximate total national debt mentioned in the text?

• About $8.5 trillion
• $2.3 trillion
• $6.1 trillion
• $10 trillion
• $4.5 trillion

What is one reason deficits occur, according to the text?

• Tax reductions are politically popular
• Balanced budgets are required
• High employment rates
• Foreign investments increase
• Surpluses are avoided

Why are most people in favor of government spending?

• They want more money spent on them
• They support tax increases
• They prefer government cuts
• They dislike social programs
• They favor higher interest rates

Why are expenses such as wars and natural disasters difficult to manage?

• They are difficult to predict
• They are always included in the budget
• They reduce deficits
• They happen regularly
• They are easy to prevent

What is stated about expenditures not recorded in the budget?

• They don’t go away
• They are forgiven
• They are never paid
• They are refunded
• They disappear over time