Describe the major sources of revenue and major types of expenditures at each level of government
What will be an ideal response?
At the Federal level of government, most spending goes for pensions and income security, national defense, health care, or interest on the public debt. The major sources of revenue are personal income taxes, payroll taxes, and corporate income taxes. State governments depend largely on sales and excise taxes, and personal income taxes. They spend much of the revenue on education. State and local governments often receive transfers and grants from the Federal government in a process called fiscal federalism. They sometimes use lotteries to supplement tax revenues.
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The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. What is the area of deadweight loss when Light-U-Up produces the unregulated, profit-maximizing level of output?
A) abd B) acg C) deg D) There is no deadweight loss.
Economic growth is shown by
A) a point near the top of the production possibilities curve. B) a point outside the production possibilities curve. C) an inward shift of the production possibilities curve. D) an outward shift of the production possibilities curve.
A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company should have paid them
a. Per store opened b. A percentage of the profit earned per new store c. A fixed salary d. All of the above
Real output per capita is calculated by
a. multiplying the population by GDP b. dividing nominal GDP by the population c. dividing the population by nominal GDP d. dividing real GDP by the population e. dividing the population by real GDP