Discretionary Outlay – Principles of Macroeconomics Quiz

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Federal Debt, Discretionary Outlay, Tax Revenue, Principles of Macroeconomics Final Quiz

The key words in this Macroeconomics course include Federal Debt, Discretionary Outlay, Economic Growth, Monthly Budget, Tax Revenue, Government, Individual Income, Social Security, Payroll Tax Rate, Excise Taxes ,


The failure to make required payments on a debt is known as

refinancing.

austerity.

defaulting.

deferring.

defiance.


Should we be concerned about a growing federal debt?

No, because federal debt, unlike private debt, does not have to be repaid.

No, because budget deficits are more important to worry about than the federal debt.

Yes, because a large federal debt may slow the rate of economic growth in the future.

Yes, because it is likely that the government will confiscate the savings of individuals to pay for the debt.

Yes, because if the debt grows too large, we will have to receive bailouts from other countries, which means they will be able to control our policy and economy.


Assuming all of the following are in your personal monthly budget, your ________ payment is considered a discretionary outlay.

mortgage (or rent, if you do not own a home)

electric bill

car loan

boat loan

student loan


The largest source of tax revenue for the government is ________ taxes.

social insurance

excise

estate

corporate income

individual income


When Social Security was first instituted by President Franklin Roosevelt in 1935, the payroll tax rate on wages used to fund the program was

4 percent.

5 percent.

2 percent.

1 percent.

3 percent.


Excise taxes are levied on

imports.

property that is gifted to others.

corporate income.

individual income.

specific goods or commodities.


The failure to make required payments on a debt is known as

refinancing.

austerity.

defaulting.

deferring.

defiance.


Should we be concerned about a growing federal debt?

No, because federal debt, unlike private debt, does not have to be repaid.

No, because budget deficits are more important to worry about than the federal debt.

Yes, because a large federal debt may slow the rate of economic growth in the future.

Yes, because it is likely that the government will confiscate the savings of individuals to pay for the debt.

Yes, because if the debt grows too large, we will have to receive bailouts from other countries, which means they will be able to control our policy and economy.


Assuming all of the following are in your personal monthly budget, your ________ payment is considered a discretionary outlay.

mortgage (or rent, if you do not own a home)

electric bill

car loan

boat loan

student loan