Chapter 15 Vocabulary

Question 1

this occurs when government outlays exceed revenue in a given time period

Answer 1

budget deficits

Question 2

this occurs when revenue exceeds outlays

Answer 2

budget surplus

Question 3

knowing how to spend money in the right places

Answer 3

balanced budget

Question 4

the total tax paid divided by taxable income

Answer 4

average tax rate

Question 5

the tax rate paid on individuals “next dollar” of income
- tax brackets -

Answer 5

marginal tax rate

Question 6

the total of all accumulates and unpaid budget deficits

Answer 6

debt

Question 7

subject to adjustment during the annual budget process
- info structure
- payment to government workers
- defense spending

Answer 7

discretionary outlays

Question 8

existing laws made these mandatory and this is the largest portion of spending
- medicare
- social security

Answer 8

non-discretionary (mandatory) outlays

Question 9

payments made to groups or individuals when no good or service is received in return

Answer 9

transfer payment

Question 10

a government administered retirement funding program

Answer 10

social security

Question 11

a mandated federal program that funds health care for people ages 65+

Answer 11

medicare