Unit 7

Question 1

Benefits received

Answer 1

Those who benefit from a govt service must pay that proportion

Question 2

Progressive tax

Answer 2

You are taxed based on your income the higher it is the more you’re taxes

Question 3

Proportional tax

Answer 3

Taxes that are the same % for all taxpayers

Question 4

Regressive tax

Answer 4

Taxes that have more of a negative impact on lower incomes

Question 5

Sin tax

Answer 5

Taxes on a item that is considered harmful ex tobacco

Question 6

Ex of ability to pay

Answer 6

Property tax

Question 7

Ex of benefits received tax

Answer 7

Road tolls

Question 8

Ex of progressive tax

Answer 8

Sales tax

Question 9

Two examples of regressive tax

Answer 9

Cigs and alcohol

Question 10

Three major sources of revenue for the Feds

Answer 10

Income sales tax and property tax

Question 11

What federal agency is responsible for collecting taxes each year and what month are they due

Answer 11

IRS and April

Question 12

Mandatory spending

Answer 12

Spending on programs is required by law

Question 13

Discretionary spending

Answer 13

Spending programs that the govt can make choices about

Question 14

Entitlement programs

Answer 14

Social welfare programs that people are entitled to if they meet certain eligibility requirements ex social security

Question 15

Two major mandatory spending programs

Answer 15

Social security and Medicare

Question 16

Two examples of discretionary spending

Answer 16

Military education

Question 17

Three largest categories of spending for the Feds

Answer 17

Military govt education.

Question 18

Diff between federal deficit and federal debt

Answer 18

federal deficit is the money the govt brings in and spends the federal debt is the total amount the govt borrows to cover the deficits

Question 19

How big is the national debt

Answer 19

18.7 trillion

Question 20

How does the govt finance the debt

Answer 20

Sells saving bonds to public to borrow the money

Question 21

Diff between public and intragovernment debt

Answer 21

Public debt is from individuals banks and foreign countries intragovernment debt is from trust funds

Question 22

Who do we owe the most money to

Answer 22

Us

Question 23

What are possible solutions to dealing with deficits and debt

Answer 23

Cutting programs and raising taxes

Question 24

Ability to pay

Answer 24

People are taxed based on their ability to pay