Podcast
Questions and Answers
What does it mean when the federal government has a budget deficit?
What does it mean when the federal government has a budget deficit?
- It spends more money than it receives in taxes in a given year (correct)
- It has a balanced budget with equal spending and tax revenue
- It receives more money in taxes than it spends in a given year
- It accumulates all past deficits and surpluses
How is the government debt different from the government deficit?
How is the government debt different from the government deficit?
- The deficit refers to what happens each year, while the debt is accumulated over time (correct)
- The deficit is accumulated over time, while the debt occurs each year
- The deficit is the sum of all past surpluses, while the debt occurs each year
- The deficit is the total debt, while the debt is just a yearly total
If a tax system increases with increasing income, what type of tax is it?
If a tax system increases with increasing income, what type of tax is it?
- Fixed tax
- Proportional tax
- Progressive tax (correct)
- Regressive tax
How does borrowing $10,000 per year for each of four years relate to deficits and debt?
How does borrowing $10,000 per year for each of four years relate to deficits and debt?
What is the main difference between the government deficit and the government debt?
What is the main difference between the government deficit and the government debt?
How does a balanced budget differ from a budget surplus or deficit?
How does a balanced budget differ from a budget surplus or deficit?
If a government consistently spends more than it receives in taxes for several consecutive years, what term would be used to describe its financial status?
If a government consistently spends more than it receives in taxes for several consecutive years, what term would be used to describe its financial status?
Which type of tax system would be most beneficial for wealth redistribution in a society?
Which type of tax system would be most beneficial for wealth redistribution in a society?
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