Federal Budget & Taxes
October 1 - September 30 of the next year is what type of year?
Fiscal year
Fill in the correct words:
Business cycles in models are very (regular/irregular), but actual business cycles are very (regular/irregular).
regular, irregular
This term is the dollar value of all final goods and services produced in a nation in a year.
Gross Domestic Product (GDP)
What are the four functions of government?
Provide Public Goods
Income Redistribution
Government Regulation of the Economy
Provide Stability
Which historic event showed the need for government to develop more economic and social programs?
The Great Depression
What agency/team of people begins the budget-making process at the federal level?
Office of Management and Budget (OMB)
What typically happens to the unemployment rate during a recession?
Increases
What are the 5 things included in National Income Accounting?
GDP
NDP
National Income
Personal Income
Personal Disposable Income
Museums and the ballet fall under which category of public goods?
merit goods
Programs that are ONLY for the poor or disabled are called what?
Public Assistance Programs
If the government is "deficit spending," what does that mean?
Spending more than they bring in.
What are the 4 causes of business fluctuations?
Business Investments, Government Activity, External Factors, Psychological Factors
In C + I + G + X = GDP, what does each letter stand for?
Consumer
Investment (Business)
Government
Net Exports
Within Income Redistribution is the program TANF. What does that stand for and specifically who is eligible for that program?
Temporary Assistance for Needy Families.
Families with young children.
GDP that has been adjusted for inflation is called this.
Real GDP
Match each type of tax with the example of it:
TAX TYPE:
Proportional
Progressive
Regressive
Excise
EXAMPLE:
Federal Income Tax
Sales tax on food
Tax on specific goods such as alcohol and cigarettes
A 5% tax increase across all income levels
Federal Income: Progressive
Sales tax on food: Regressive
Tax on alcohol: Excise
5% tax increase for all: Proportional
Which of the following is an example of a leading indicator?
–Ratio of consumer installment debt to personal income
–Number of non-agricultural workers employed
–New orders for consumer goods
New orders for consumer goods
This is term for the point of comparison for current prices.
Base year
The four areas of Government Regulation of the Economy are Consumer Protection, Promote Competition, Labor & Management Relations, and Limit Negative Externalities.
If the federal government passes a new anti-trust law, which of these areas would that fall under?
Promote Competition
Give three examples of public goods.
Roads, national defense, parks, etc.
School property tax is an example of which PRINCIPLE of taxation?
Ability to pay (Property tax based on value)
List the order of the business cycle. Include all parts, even though we don't always have all of them. (Begin at the most prosperous time)
Peak/Boom
Contraction
Recession
Depression
Trough
Expansion/Recovery
If the current CPI is 205.8, by what percent have prices increased since the base year?
105.8%
The argument that it discourages people from providing for themselves or encourages reliance on the government is the primary argument against which government function?
Income redistribution
Use the following to list a typical process of proposing and passing a federal budget from start to finish. You may use them more than once (if it's correct).
Senate
President
Office of Management and Budget (OMB)
House of Representatives
Federal Agencies
President/OMB
Agencies
*President
House
Senate
President