The Federal Government
State and Local Governments
Managing the Economy
International Trade
Pt. 1
International Trade
Pt. 2
100
A blueprint of how the government will raise and spend money is called a _______.
Budget
100
Where do states get most of their money?
Intergovernmental revenue
100
When the government makes more than it spends it has a __________.
Surplus
100
Good that come into the country are known as _________.
Imports
100
A country has a trade deficit when it _______ more than it _______.
imports, exports
200
Some spending doesn't have to be approved because it HAS to be spent each year. This is called mandatory spending. Give and example.
Social Security, interest on debt
200
The second most important source of income for the state is something you pay whenever you buy something. This is called the _______ tax.
Sales
200
When the government spends more than it makes it has a _________.
Deficit
200
Goods that are shipped out the country are known as _______.
Exports
200
The price of your currency in terms of another nation's currency is the ________ rate.
Exchange
300
___________ pays some of the health care costs for the elderly.
Medicare
300
Local governments tax people on their possessions. This tax is call the _________ tax.
Property
300
The deficits from all previous years combined make up the national ________.
debt
300
Trade between countries with no barriers is know as _________.
Free trade
300
A balance of trade is when a countries exports and imports are _________.
Equal
400
Appropriations bills are laws that do what?
Approve spending for a particular activity.
400
Entitlement programs can only be payed to people who qualify for them. Give an example of an entitlement program.
Health, nutritional payments (welfare)
400
When expenditures=revenues there is a ________ budget.
Balanced
400
A tax on goods coming into the country is called a ______.
Tariff
400
What does NAFTA stand for?
North American Free Trade Agreement
500
Spending that is not required every year and that must have an appropriations bills is called ____________.
Discretionary spending
500
When the state pays the partial cost of tuition to a school it is called a ________.
Subsidy
500
Programs that go into effect when people need them and that act as "automatic stabilizer" help the economy. What is one example?
Unemployment benefits, income tax
500
A quota is a limit on the amount of ________ goods allowed to be imported.
Foreign
500
One reason that countries trade with one another is to gain comparative advantage. What does this mean?
That they benefit from trade because they may get a product for cheaper or they may sell more of a product because they specialize or have better factors of production.
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