Public Sector

Question 1

G expenditures def (3) + what they include

Answer 1

-federal
-state
-local
outlays to goods and services including transfer payments

Question 2

Difference G spending and G expenditures

Answer 2

G expenditures= type of G spending that includes transfer payments

Question 3

What is the biggest G expenditure

Answer 3

Income security

Question 4

What does income security include (6)

Answer 4

-medicare
-social security
-public assistance
-unemployment help
-retirement help
-disability help

Question 4

What does income security include (6)

Answer 4

-medicare
-social security
-public assistance
-unemployment help
-retirement help
-disability help

Question 5

2 largest sources of revenue of the G

Answer 5

1: Individual outcome
2: taxes

Question 6

2 philosophies of tax fairness

Answer 6

1- Benefit received principle
2- Ability to pay principle

Question 7

Benefit received principle def+ EX

Answer 7

Those who benefit more from taxes should pay more
EX gas

Question 8

Ability to pay principle def

Answer 8

Those who have higher incomes should pay more taxes
Most popular

Question 9

3 types of taxes

Answer 9

-progressive
-regressive
-proportional

Question 10

Progressive tax def + what principle it follows

Answer 10

We pay more taxes as income rises
Follow ability to pay principle

Question 10

Progressive tax def + what principle it follows

Answer 10

We pay more taxes as income rises
Follow ability to pay principle

Question 11

Regressive tax def +4 EX

Answer 11

We pay less as income rises
-sales taxes (anything you buy)
-payroll taxes (tax on salaries)
-excise taxes (specific things)
-property taxes

Question 12

Proportional tax / Flat tax def + what principle it does not follow

Answer 12

Charges same income tax regardless of income

Question 12

Proportional tax / Flat tax def + what principle it does not follow

Answer 12

Charges same income tax regardless of income

Question 13

Public choice theory def

Answer 13

Analysis of G choices

Question 14

Benefit cost analysis def

Answer 14

Comparison of different choices to allocate resources

Question 14

Benefit cost analysis def

Answer 14

Comparison of different choices to allocate resources

Question 15

What choice does a rational firm take with marginal cost

Answer 15

Produce as long as marginal benefits exceed marginal cost

Question 16

Is the social security tax regressive?

Answer 16

Yes

Question 17

One of the problems with a growing national debt is the growing interest payments which must be paid on that debt.

Answer 17

The national debt is the total amount owed by the federal gov to owners of government securities which grows the interests rates and must be paid on the debt.