Module 5

Question 1

There is no process outlined in the constitution for creating a budget or plan for the government?

Answer 1

True

Question 2

Enumerated powers

Answer 2

Granted to congress as outlined in article 1 section 8 of constitution

Question 3

Implied powers

Answer 3

Powers authorized by the constitution that, while not stated, seem implied by powers that are expressly stated.

Question 4

In the constitution, the presidents only role in the funding process is signing and vetoing funding bills?

Answer 4

True

Question 5

Federal Fiscal year

Answer 5

October 1

Question 6

Most states fiscal year starts

Answer 6

July 1, fits into school year

Question 7

Describe the budgeting process

Answer 7

1) The president works with cabinet officers to create a budget proposal, submitting to congress by February.
2) Congress divides the budget into 12 parts. Committees make recommendations to congress by April, finished before October.
3) if congress doesn’t finish, or president vetoes, there is a) continuing resolution b) government shutdown

Question 8

The Constitution requires the budget to balance?

Answer 8

False

Question 9

Sequestration

Answer 9

Sets limits on some spending and requires across the board cuts if congress cannot agree

Question 10

Paygo

Answer 10

Pay as you go. New programs must be paid for as you go. From Budget Enforcement Act you f 1990

Question 11

Types of government spending

Answer 11

1) mandatory spending
2) interest on national debt
3) discretionary spending

Question 12

Mandatory spending

Answer 12

Already set by law

Social security, Medicare, federal retirement

Question 13

What are some examples of clearly enumerated powers in the constitution?

Answer 13

• Establish post office and roads
• fund Supreme Court and lesser federal courts
• fund army, navy, state militias
• coin money
• protect intellectual property

Question 14

What are some examples of flakey enumerated powers??

Answer 14

• regulate commerce
• regulate tue value of money
• deal with pirates
• “necessary and proper” for all the powers, provide for the general welfare

Question 15

US is a __________ system. Many countries are ___________.

Answer 15

Federal

Unitary

Question 16

Article 1 section 8

Answer 16

The congress shall have the power to lay and collect taxes, duties, imposts, and excises but all shall be uniform throughout the United States.

Question 17

Article 1 section 9

Answer 17

No capitation or other direct tax shall be laid unless in proportion to the census or enumeration herein before directed to be taken

No tax or duty shall be laid on articles exported from any state

Question 18

16th amendment

Answer 18

The congress shall have the power to lay and collect taxes in incomes from whatever source derived without apportionment among the several states and without regard to any census or enumeration

Question 19

Article 1 section 10

Answer 19

No state shall without the consent of congress lay any imposts or duties on imports or exports except what may be absolutely necessary for executing its inspection laws.

No state shall without the consent of congress lay any duty on tonnage

Question 20

Earmarked tax

Answer 20

Tax tied to a specific function

Ex. Gas tax is earmarked for roads

Question 21

Tax incidence

Answer 21

Refers to who actually pays for a tax

Question 22

Shifting

Answer 22

Person or business who pays the government gets the money from someone else who pays the true cost

Question 23

Excises

Answer 23

An excise tax is placed on a good or service.

Can be a general tax like the sales tax, or a specific tax like the gasoline tax

Question 24

Value added tax (VAT)

Answer 24

Tax included in the price of the good.

Question 25

Imposts/Duties

Answer 25

Tariffs - taxes on imports

Question 26

Nexus

Answer 26

Connection. Historically businesses only collected taxes from customers in states where they had a physical presence, employees, etc.

Question 27

McCulloch vs Maryland (1819)

Answer 27

In our federal system One level cannot tax the other level.

Ex. State of Nevada cannot tax the government

Question 28

Income effect

Answer 28

An increase in price is effectively a decrease in your income

Question 29

Substitution effect

Answer 29

When the price of a good rises, we substitute other, cheaper, goods when possible

Question 30

An increase in sales tax would lead to a shift in __________

Answer 30

Supply

Question 31

Elastic Demand

Answer 31

When consumers are sensitive to price

Question 32

When demand is __________, businesses find it hard to raise the price and so will eat the tax

Answer 32

Elastic

Question 33

Inelastic Demand

Answer 33

When consumers are insensitive to price

Question 34

When demand is _________, the business can pass the tax on to the consumer.

Answer 34

Inelastic

Question 35

Progressive tax

Answer 35

Takes a larger percentage of income as income rises

Ex. Income tax

Question 36

Proportional tax

Answer 36

Takes the same percentage of income regardless of income

Ex. Corporate profit tax

Question 37

Regressive tax

Answer 37

Takes a lower percentage of income as income rises

Ex. Sales taxes, property taxes taxes, social security taxes

Question 38

States fiscal year

Answer 38

July 1 (coincides with school year)

Question 39

Federal System

Answer 39

Multiple levels of government

Question 40

Unitary System

Answer 40

1 level of government

Question 41

“Fiscal Year” means

Answer 41

Budget year