Exam 17: Economic Policy

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The federal budget deficit occurs when the government's expenditures exceed its revenues in a given fiscal year. This can happen for a variety of reasons, including increased spending on programs and services, decreased tax revenues, and economic downturns that reduce overall government income. To bring down the federal budget deficit, several measures can be taken. One approach is to increase government revenues by raising taxes or closing tax loopholes. Another option is to reduce government spending by cutting unnecessary programs or finding more efficient ways to deliver services. Additionally, efforts to stimulate economic growth and increase overall tax revenues can help to shrink the deficit over time. It's important to note that addressing the federal budget deficit requires a balanced approach that takes into account both revenue and spending. By carefully evaluating government programs and policies, and making strategic adjustments to both revenue and spending, it is possible to bring down the deficit and put the country on a more sustainable fiscal path.

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There are several factors that can affec...

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A) Progressive
B) Flat
C) Value added
D) Regressive
E) Excise

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A) The wealthy pay a lower tax.
B) The wealthy pay a higher tax.
C) The poor pay a lower tax.
D) The poor pay a higher tax.
E) Everyone pays at the same rate.

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A federal budget outlay refers to the am...

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The goals of the Federal Reserve Board, ...

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A) Federal income tax
B) Federal student loans
C) Medicare
D) Medicaid
E) An IRA

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C

A) Designate certain governmental powers as reserved for the federal government
B) Provide a secondary military force in times of war
C) Pay off the national debt
D) Stabilize nationwide economic activity by controlling the amount of money in circulation
E) All of these are correct.

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A) An appropriations committee
B) A central bank
C) A general accounting office
D) A budget signature authority
E) A financial review office

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A) Progressive spending
B) Mandatory spending
C) Uncontrollable spending
D) Discretionary spending
E) Incremental spending

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D

A) Presidents
B) Federal Reserve Board
C) Congress
D) Congressional Budget Office
E) Treasury Department

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A) Progressive
B) Flat
C) Regressive
D) Payroll
E) Excise

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A) Zero-based budgeting
B) Incremental budgeting
C) The program planning budgeting system (PPBS)
D) Deficit budgeting
E) Cost analysis

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A) Retroactive policies
B) Discretionary spending
C) Controllable spending
D) Entitlements
E) Earmarks

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An entitlement program is a government p...

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A) Almost all
B) About three-fourths
C) About half
D) About one-fourth
E) Almost none

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A) It is popular with conservatives.
B) It is an approach to stabilize the economy through control of the money supply.
C) It is controlled by the Federal Reserve Bank.
D) It is an approach to stabilizing the economy through government spending and taxing.
E) It requires that, during economic slowdowns, the government tighten its belt on spending.

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A) It increased slightly.
B) It increased dramatically.
C) It stayed about the same.
D) It decreased.
E) It is impossible to determine.

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