Financing Government

Taxes and Revenue

100

The largest source of federal revenue come from these types of taxes.

What is individual income taxes?

200

Both corporate and individual taxes are set at ____ rates.

What are progressive?

300

This is a tax levied on money or property given by one living person to another.

What is a gift tax?

400

This is a tax on certain goods imported into the United States.

What are custom duties?

500

The federal government's power to tax is limited in all of the following ways except:

A. Taxes must be for public purposes only

B. Only certain exported items can be taxed

C. Direct taxes must be apportioned equally

D. Indirect taxes must be uniform

What is only certain exported items can be taxed?

Taxes and Revenue

100

These are taxes on manufacture, sale, or consumption of goods.

What are excise taxes?

200

This is a tax that has a higher rate of income.

What is a progressive tax?

300

This is a tax levied at a flat rate.

What is a regressive tax?

400

Which of the following is not a source of nontax revenue in the United States? (section 1)

• Interest loans made by the Federal Government
• personal gifts to the conscience fund
• Revenues collected as custom duties
• Profit from the manufacture of money

What is revenues collected as custom duties?

500

This is a tax generally withheld from paychecks for three major social welfare programs.

What is a payroll tax?

Borrowing and Public Debt

100

Public debt today is measured in ____ of dollars.

(thousands, millions, billions, trillions)

What is trillions?

200

This was a reason the US government had power to borrow money historically.

What is meet crises?

300

The government borrows money today primarily because

• The public debt is minimal compared to the needs of government
• Congress continues to appropriate funds for government
• The government has been operating beyond its means for years
• The government is able to borrow money at lower rates than individuals

What is the government has been operating beyond its means for years?

400

This is the government's outstanding indebtedness.

What is the public debt?

500

This is the federal government's yearly shortfall between income and outgo.

What is deficit? 

Spending and the Budget/Fiscal Policy

100

This is a benefit the law says must be paid to those who meet eligibility requirements.

What is entitlement?

200

The process of preparing the federal budget begins with

• Estimates from all agencies that use budget money
• Plans for spending determined by the President
• Spending plans submitted by the Office of Management and Budget.
• Suggestions on spending from congressional committees

What is estimates from all agencies that use budget money?

300

The federal budget is important mostly because it

• Determines how revenues will be collected
• Demonstrates the President’s stand on significant issues
• Determines which public programs will have money to operate
• Limits the sources from which budget money can come

What is determines which public programs will have money to operate?

400

This is a ruling that allows government agencies to function until appropriations are approved.

What is continuing resolution?

500

This is the process that involves the buying or selling of government securities from and to the nations banks.

What is open market operations?