. An indicator of a healthy economy would be high deficit spending. increasing imports from foreign countries. an escalating consumer price index. low unemployment and low inflation rate. 2. Government expenditures are diverse. In a minimum

. An indicator of a healthy economy would be high deficit spending.increasing imports from foreign countries.an escalating consumer price index.low unemployment and low inflation rate. 2. Government expenditures are diverse. In a minimum of three well-written paragraphs, describe the various areas, items, programs that require government expenditures. (5 points) Include in your response a description of those categories, which are considered uncontrollable expenditures. (5 points) Based upon your reading and studies in this unit, describe one area where you think expenditures may be reduced, and another area where you believe expenditures should be increased. (5 points)   Font Family Font Size                      3. Money that the government owes is referred to as the federal expenditures.revenue.the federal budgetthe federal debt. 4. Which of the following branches/agencies of government have no direct roll in establishing the federal budget? the executive branch.the legislative branch.the judicial branch.the Office of Management and Budget. 5. Which of the following is descriptive of a socialist system? Industry is nationalized.The government distributes necessities and services to the people.Taxes tend to be high.All of the above. 6. In order to fund all of the government s responsibilities and programs, the government must bring in money. In a minimum of three well-written paragraphs, describe three ways the federal government obtains funds.   Font Family Font Size                      7. Which of the following is the most accurate statement regarding the federal budget? Balancing the budget is a simple a process of increasing taxes to meet government expenses.Balancing the budget has been a concern and is difficult to achieve.The president has control of the federal budget and the congress is unable to revise the spending plan.the Office of Management and Budget has final approval of the federal budget. 8. Between 1980 and 2005 the unemployment rate has fluctuated between 4% and 10%. The lower the rate, the less people are employed.the more people are employed.the greater the rate of inflation.the greater the federal deficit. 9. Which of the following is descriptive of a deficit budget? It plans to have more revenue than expenditure.It plans to have equal income and expenditure.It plans to have more expenditure than revenue.Taxes are required by law to balance the budget. 10. Another term for a capitalist economic system is monopoly.communist system.free enterprise system.cooperative system. 11. In a mixed economy, individuals and corporations own the means of production, with government restrictions and regulations.individuals do not have the right to own property.all industry is nationalized.All of the above. 12. In the United States, monetary policy is controlled by The Treasury Department.The Federal Reserve System.The Internal Revenue Service.the Office of Management and Budget 13. Which of the following is true of the federal income tax structure? The poor are required to pay a higher percentage of their income than the wealthy.The tax structure requires payment of an equal percentage of income from all Americans.Individuals pay income taxes; however, corporations and businesses do not.The poor pay a much smaller percentage of their income than the wealthy. 14. Money coming in to the government is known as capital gains.the GI bill.revenue.social security. 15. A capitalist economic system is found in the United StatesCubaChinaSweden 16. The law of supply and demand relates to the relative price of goods and services.the rate of unemployment.the income tax structure.the campaign against consumer fraud. 17. During a period when there is an increase in the price of general consumer goods, the economy is said to be experiencing a deficit.inflation.outsourcing.a mixed economy. 18. The program whereby taxes are deducted from employees’ checks, proceeds are put into a trust fund, and distributed to the elderly, disabled, widowed, and unemployed is know as the federal debt.the Social Security System.the Federal Reserve System.the Internal Revenue Service. 19. When American companies have their products made, or services provided outside of the United States, it is known as exportation.importation.outsourcing.warehousing. 20. Benefits paid to those who meet established eligibility requirements are referred to as interest payments.budgetary reserves.entitlements. 21. What is the primary reason that the United States has increased the amount of goods it imports from foreign nations? foreign work ethicskilled labor in foreign countriesmodern transportation makes it more efficientlower labor costs 22. The government’s annual plan for obtaining and spending revenue is found in the federal budget.the State of the Union Address.the 22nd amendment.the Consumer Price Index 23. Developing a plan for government income and spending is an annual process involving input from various government departments and agencies, as well as outside influences. List at least five government offices and/or agencies, or other influences which impact the creation of this plan. Describe the particular role each one has in the process of developing or approving the plan. (5 points)   Font Family Font Size                      24. The government must bring in money to fund programs and expenses. Money that the government spends is called deficits.revenue.expenditures.debts. 25. The major sources of money for the federal government are