Chapter 12 - Paying for the Government

Question 1

interest

Answer 1

payment for the use of loaned money

Question 2

national debt

Answer 2

the total amount of money owed by the US government plus the interest

Question 3

revenue

Answer 3

income

Question 4

fees

Answer 4

government charge for a service or license

Question 5

fine

Answer 5

money paid as a penalty for breaking laws

Question 6

bond

Answer 6

a certificate of debts issued by governments and corporations (government IOU’s)

Question 7

income tax

Answer 7

a tax on the income that individuals and companies earn

Question 8

progressive tax

Answer 8

a tax that takes a larger % of income from high-income groups and a lower % from low-income groups

Question 9

profit

Answer 9

the income left AFTER paying expenses

Question 10

regressive tax

Answer 10

a tax that takes a larger % of income from low-income groups than from high-income gropus

Question 11

property tax

Answer 11

local or state tax on property (land or items)

Question 12

tariff

Answer 12

a tax on IMPORTED products

Question 13

balanced budget

Answer 13

revenue equals expenditures (money in = money out)

Question 14

surplus

Answer 14

income exceeds expenditures (money in > money out)

Question 15

deficit

Answer 15

expenditures exceed income (expenses > income)

Question 16

audit

Answer 16

an EXAMINATION by an accountant of income and expenditures