Chapter 18- Public Finance Flashcards
1
Q
Full employment
A
Everyone who wants to work should have a job
2
Q
National income accounting
A
The nation keeps track of our overall income
3
Q
Economic growth
A
An increase in goods and services that better benefit people
4
Q
Inflation
A
Price level increasing
5
Q
Deflation
A
When price level is decreasing
6
Q
Proportional taxes
A
Taxpayer pays the same amount of their income in taxes
7
Q
Progressive taxes
A
A person with higher income pays higher taxes, same for lower income
8
Q
Regressive taxes
A
Takes percentage of taxes from a person with low and high income
9
Q
Direct taxes
A
Tax on income
10
Q
Indirect taxes
A
The price a consumer pays for a product
11
Q
Balanced budget
A
Requires government to not spend more than tax revenue than receives
12
Q
Deficit budget
A
The government spends more than the tax revenue received
