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Macro 5.4-Fiscal Policy Stabilizers, Deficit vs. Surplus, National Debt (1 question per student)

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Last updated 11 months ago
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Answer each question!
THEN....
Click the hint to check your answer.
Click the link LATER in the day or in the unit for a further read.

In the end, everyone's knowledge of this varies. Review w
Question 1
1.

Government generates most of its revenue from customs
https://www.taxpolicycenter.org/briefing-book/what-are-sources-revenue-federal-government

Question 2
2.

Most government receipts (revenues) come from various taxes.
https://www.taxpolicycenter.org/briefing-book/what-are-sources-revenue-federal-government

Question 3
3.

Business and Corporate taxes are the greatest revenue source for the federal government. https://www.taxpolicycenter.org/briefing-book/what-are-sources-revenue-federal-government

Question 4
4.

The federal income tax is a proportional tax.
https://www.investopedia.com/ask/answers/042415/what-are-differences-between-regressive-proportional-and-progressive-taxes.asp

Question 5
5.

Payroll taxes include the federal income tax, as well as payments of the Social Security tax and Medicare.
https://taxfoundation.org/what-are-payroll-taxes-and-who-pays-them/

Question 6
6.

Defense spending is the greatest expenditure in the federal budget (As of 2021)
https://www.nationalpriorities.org/budget-basics/federal-budget-101/spending/

Question 7
7.

Sales tax is the greatest revenue source for state and local governments.
https://taxfoundation.org/sources-state-and-local-tax-revenues/

Question 8
8.

State and local police as well as correction facilities are the greatest expenditure for state and local governments.
https://www.urban.org/policy-centers/cross-center-initiatives/state-local-finance-initiative/projects/state-and-local-backgrounders/state-and-local-expenditures

Question 9
9.

A payment made by the federal or state government without receiving a good or service in return is a transfer payment.
https://www.investopedia.com/terms/t/transferpayment.asp

Question 10
10.

Government Deficit and Government Debt are two terms that can be used as synonyms.
https://www.investopedia.com/articles/personal-finance/081315/debt-vs-deficit-understanding-differences.asp

Question 11
11.

The two types of federal spending are discretionary and mandatory (automatic).
https://www.nationalpriorities.org/budget-basics/federal-budget-101/spending/

Question 12
12.

A marginal tax rate is the extra tax dollar paid on the additional income earned in a given time frame.
https://www.investopedia.com/terms/m/marginaltaxrate.asp

Question 13
13.

The US tax system is base on three principles of taxation: ability to pay principle, benefit principle...which are principles focused on equity. http://econperspectives.blogspot.com/2008/12/equity-of-tax-system.html

Question 14
14.

There are three types of taxes: progressive, regressive, and proportional tax.
http://www.socialstudieshelp.com/eco_taxation.htm

Question 15
15.

The federal income tax is a progressive tax.
https://www.taxpolicycenter.org/briefing-book/are-federal-taxes-progressive

Automatic Stabilizers are fiscal spending or taxation that does NOT require Congressional or Presidential Approval! These are mandatory forms of fiscal spending or taxation.

Discretionary Stabilizers are fiscal spending or taxation that DO require Congressional or Presidential Approval! These are discretionary forms of fiscal spending or taxation.
Question 16
16.
When the government cuts personal income tax rates this is a type of __________ tool.
Question 17
17.
When the government eliminates favorable tax treatment on long term capital gains this is a type of__________ tool.
Question 18
18.
Income rise; as a result, people pay a larger fraction of their income in taxes.__________
Question 19
19.
As a result of a recession, more families qualify for food stamps and welfare benefits.__________
Question 20
20.
The government eliminates the deductibility of interest expense for tax purposes.__________
Question 21
21.
The government launches a major new space program to explore Mars.__________
Question 22
22.
The government raises Social Security taxes.__________
Question 23
23.
Corporate profits increase; as a result, the government collects more corporate income taxes.__________
Question 24
24.
The government raises corporate income tax rates.__________
Question 25
25.
The government gives all its employees a large pay raise.__________
Check these out!

https://www.usdebtclock.org/
https://www.usdebtclock.org/world-debt-clock.html
Question 26
26.
When tax revenue > spending for a single year, this called a budget _______ .
Question 27
27.
When tax revenue < spending for a single year, this called a budget _______ .
Question 28
28.
When tax revenue = spending for a single year, this called a _______ budget.
Question 29
29.
When we add up ALL of the deficits and surpluses from all prior years, we get national _______ .