Government Revenue
Where does most of the Government Revenue come from?
Income Tax
What country spends the most on defense?
USA
What is the goal of Expansionary Fiscal Policy?
Stimulate economic growth
Do you pay tax now?
Yes, sales tax on things you buy
What does air pollution do to babies?
Low birth weight, premature birth
Who pays the greatest share of Tax Revenue
The top 20% of earners
What is Discretionary spending?
Expenditures that are decided each year
What are the two tools of Fiscal Policy?
Government spending, taxes
Bonus ... 250 points for your team ... pick another team and they get 250 points
Two teams get 250
Roughly, how many deaths due to air pollution per year?
7 million
What does it mean if a tax is 'Progressive'
The more you make the higher the percent of income tax
What is an example of Mandatory Spending?
Social Security, Medicare, Medicaid,
Give 400 free points to another team
Pick a team, give them 400 points
“An unemployed worker has a low opportunity cost.”
What does this mean?
the worker does not have any high value tasks to do
Trade all your points with another team
Choose another team, switch points
Bonus Free Question ... 200 to your team, 200 to another team
Your team gets 200 points for free
Pick another team to give 200 points
Take a guess at how much is USA national debt within 6 trillion dollars
36 trillion dollars
What is the goal of Contractionary Fiscal Policy?
Reduce inflation, reduce budget deficit
There are three conditions for Fiscal Policy to work. Name one.
Must be in response to downturn caused by demand/uncertainty
Must be timely
Must be targeted
What is Human Capital?
Human Capital is the skills,
intelligence, experience,
training and education that
people use to produce goods
and services
Is Sales Tax progressive or recessive?
Recessive
What is the difference between deficit spending and national debt
Deficit is like a flow, Debt is the accumulated amount.
What does Crowding Out mean in Fiscal Policy?
When the economy is at full employment, government spending can crowd out private spending by using resources already utilized by the private sector.
What is an Automatic Stabilizer?
Automatic stabilizers are economic policies and programs that automatically adjust to counteract economic fluctuations without additional government action.
What is one technology that can help reduce air pollution?
Solar, Electric Cars, Wind power ...