CH 11 Quiz

Government Expenditure is equal to Government Purchase

• True

• False

Government Expenditures = SUM(Government Purchases + Government Transfer Payment)

Yes or No

What four programs accounted for 67% of all government spending in 2016?

• National Defense, Social Security, Wars, Income Security

• National Defense, Social Security, Medicare, Income Security

• Social Security, Infrastructure, Education, Income Security

• Income Security, Infrastructure, Medicare, Public Realtions

Where does the bulk of government tax revenue come from?

• Individual Income Tax, Corporate Income Tax, Payroll Taxes

• Individual Income Tax, Capital Gains Tax, Investment Tax

• Capital Gains Tax, Corporate Income Tax, War Tax

Progressive Income Tax is...

• an income tax system in which one's tax rises as taxable income rises (up to some point)

• an income tax system in which a person's tax rate is the same regardless of taxable income

• an income tax system in which a person's tax rate declines a his or her taxable income rises

Proportional Income Tax is...

• an income tax system in which one's tax rate rises as taxable income rises (up to some point)

• an income tax system in which a person's tax rate declines as his or her taxable income rises

• an income tax system in which a person's tax rate is the same regardless of taxable income

Regressive Income Tax is...

• an income tax system in which a person's tax rate declines as his or her taxable income rises

• an income tax system in which a person's tax rate is the same regardless of taxable income

• an income tax system in which a person's tax rate rises as taxable income rises (up to some point)

Budget Deficit is...

• government expenditures greater than tax revenues

• tax revenues greater than government expenditures

• government expenditures equal to tax revenues

Budget Surplus is when...

• government expenditures are greater than tax revenues

• Tax revenues greater than government expenditures

• government expenditures equal to tax revenues

Balance Budget is when...

• government expenditures equal to tax revenues

• tax revenues greater than government expenditures

• government expenditures are greater than tax revenues