The Rest of the Notes

Question 1

_________ is a national health insurance program for citizens over 65 and certain other groups of people.

Answer 1

Medicare

Question 2

Employers and employees each pay _______ of employee income.

Answer 2

1.45%

Question 3

_________ is a program funded by federal and state taxes and administered by the states.

Answer 3

Unemployment compensation

Question 4

__________ provides benefits for a certain period of time to employees who lose their jobs through no fault of their own.

Answer 4

Unemployment

Question 5

_________ applies to the first $7,000 earned by an employee.

Answer 5

Unemployment tax

Question 6

An individual can collect unemployment benefits for a maximum of _______.

Answer 6

26 weeks

Question 7

Congress passed the ___________ to extend that duration to 72 weeks.

Answer 7

emergency benefits program

Question 8

________ is the third largest source of tax revenue for the federal government.

Answer 8

Corporate income taxes

Question 9

Tax breaks for corporations include:

Answer 9

deduction for investment in buildings, equipment, research, and rules that benefit multinational corporations.

Question 10

_______ are taxed at the corporate level and again at the individual level, since shareholders pay taxes on the income they receive in the form of dividends and capital gains.

Answer 10

profits

Question 11

______ is a tax on property that is transferred to others on the death of the owner.

Answer 11

estate tax

Question 12

________ is a tax on money or property given by one living person to another.

Answer 12

gift tax

Question 13

The maximum amount of a gift you receive cannot be more that _______ per year, per individual.

Answer 13

$14,000

Question 14

_________ is a tax on the production or sale of a specific product, such as gasoline or telephone service.

Answer 14

excise tax

Question 15

The government places excise taxes on goods or services for which there is relatively inelastic demand in order to maintain a steady stream of _________.

Answer 15

revenue

Question 16

________ is a tax on goods imported into the United States from another country.

Answer 16

customs duty

Question 17

Customs duties are basically excise taxes on imports and are known as ________.

Answer 17

tariffs

Question 18

_______ is money charged for the use of a good or service.

Answer 18

user fee

Question 19

The federal government charges entrances, parking, and camping fees to visitors to __________.

Answer 19

national parks

Question 20

The program and services the federal government funds with tax revenue are divided into two categories:
__________ & __________

Answer 20

• mandatory spending

- discretionary spending

Question 21

_________ makes up well over half of all federal spending.

Answer 21

mandatory spending

Question 22

Most of this spending is in the form of ________, which are social welfare programs with specific requirements.

Answer 22

entitlements

Question 23

_______ means certain conditions have been met to receive the benefit.

Answer 23

“means tested”

Question 24

The ________ program takes the largest amount of federal spending.

Answer 24

social security

Question 25

Workers must have worked for a certain period of time before they are eligible to receive full benefits under the program which is _____ years in the U.S.

Answer 25

10

Question 26

To help control cost, the _________ has gradually raised the age of full retirement.

Answer 26

government

Question 27

________ program was introduced in 1966 as an additional old-age benefit under Social Security

Answer 27

Medicare

Question 28

________ is a joint federal-state medical insurance program for low-income people.

Answer 28

Medicaid

Question 29

The federal government funds about _____ of the costs of the program, and the states pay about ____.

Answer 29

63% ; 37%

Question 30

________ program provides funds for about 26 million low-income people to purchase food.

Answer 30

Food Stamp

Question 31

_______ benefits include health care coverage and disability payments for services-related illness or injury.

Answer 31

Veteran’s

Question 32

The largest discretionary expenditure category is __________ which takes up about 50% of the total discretionary budget.

Answer 32

national defense

Question 33

_______ border protection and the enforcement of some immigration laws falls into the mandatory expenditures category.

Answer 33

Homeland Security

Question 34

________ is a plan for spending federal tax money.

Answer 34

federal budget

Question 35

_______ is a 12 month period for which an organization plans its expenditures.

Answer 35

fiscal year

Question 36

The federal government’s fiscal year runs from _______ through ______.

Answer 36

October 1 ; September 30

Question 37

________ is prepared by the Office of Management and Budget.

Answer 37

President’s budget

Question 38

________,by which the government buys goods and services that it needs to operate, such as military equipment and office supplies.

Answer 38

direct spending

Question 39

________ are money distributed to individuals who do not provide anything in return.

Answer 39

Transfer payments

Question 40

________ is a transfer payment from the federal government to state or local governments.

Answer 40

grant-in-aid

Question 41

The federal government influences the economy in three ways:

Answer 41

• Resource allocations
• Income redistribution
• Competition with the private sector

Question 42

_______ is the part of the economy owned by individuals or businesses.

Answer 42

private sector