Questions and Answers
What is money spent on government programs referred to as?
The descriptions on a sample paycheck are examples of what kind of taxes?
When might workers be exempt from paying income taxes?
Which best describes a way in which the government might respond to rising threats to national security through fiscal policy?
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Revenue is the amount of money that:
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One suggestion the new president is most likely to make in the budget proposal is to:
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Based on the chart, what areas made up half of the government's expenditures?
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When the government spends money or makes a payment, it is called a(n) ________.
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A conclusion that can be drawn from the graph showing the federal budget growth between 1980 and 2010 is:
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Any goods being imported from another country may be subject to ___________ issued by the federal government.
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Study Notes
Fiscal Policy Key Concepts
- Government programs and initiatives funded through financial allocations are known as expenditures.
- Payroll taxes are deducted from employee earnings to fund social welfare programs.
Tax Exemptions and Obligations
- Workers may be exempt from paying income taxes if their earnings do not meet the minimum threshold.
Government Response to National Security
- In response to rising national security threats, the government might choose to increase military spending as a strategic fiscal policy.
Revenue Generation
- Revenue refers to the funds collected by the government through taxes or borrowing, which are essential for funding programs and services.
Budget Proposals and Entitlement Programs
- New presidential administrations often propose to increase spending on Social Security as part of their budget to fulfill campaign promises related to entitlement programs.
Major Government Expenditures
- Key areas comprising half of government expenditures include Social Security and Education/Health and Human Services, demonstrating the focus on social welfare.
Definition of Expenditure
- The term expenditure is used when referring to any government spending or payments.
Federal Budget Trends
- Analysis of federal budget growth from 1980 to 2010 indicates that the federal government has frequently spent more than it collects, demonstrating a reliance on borrowing to cover expenditures.
Importation Fees
- Goods imported from abroad may be subject to a tariff, which serves as a form of tax levied by the federal government to regulate trade.
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Description
Test your knowledge on fiscal policy with these flashcards. This quiz covers essential terms and concepts related to government spending, taxes, and exemptions. Perfect for students looking to reinforce their understanding of fiscal policy essentials.
