ECON 214 InQuizitive ch. 15 Liberty University Solution

Use the following table of marginal tax rates to calculate the average income tax rate, as a percentage of total income, paid by someone earning $500,000.

Drag the countries into their proper locations on the chart, which shows debt-to-GDP ratios (in percentages) for the year 2013.

What kind of government expenditure is defined as payments made to groups or individuals when no good or service is received in return?

Click on the time interval when mandatory spending was at its peak as a percentage of the U.S. federal budget.

Click on the two wedges that represent payroll tax revenue as a share of total U.S. federal government tax revenue in 2014.

Interest payments are payments made – current owners of –. Because these payments are determined by the level of government – and therefore are –adjustable, they can be considered a type of – payment.

As the figure illustrates, the ratio of U.S. workers – Social Security to former workers – it has dropped since 1960 and is projected to drop further. This trend will make it – to sustain Social Security in its present form.

Assume a nation is starting with zero national debt. If government outlays and tax revenue are as shown, and the nation’s GDP is $12 billion at the end of Year 3, what is its debt-to-GDP ratio at that time? Round to the nearest whole percent.

The percentage of the U.S. federal government’s debt owned by foreign entities went –from – in 1990 to – in 2013. It is important to remember, however, that foreign supply in the loanable funds market helps keep interest rates –, which benefits domestic –. It is also worth noting that demand for U.S. Treasuries is a sign that other economies beside the United States’s are –.

Use the following table of marginal tax rates to calculate the total income tax paid by someone earning $70,000.

The table below lists some fictional countries. Calculate the debt-to-GDP ratio for each of them, then put them in order of their fiscal condition, worst to best. Numbers are in billions of dollars.

The income tax was first instituted in –. Prior to that date, most tax revenues were generated by – taxes. The income tax was a progressive system from the start, and the top marginal rate was –. Marginal rates climbed significantly during –, and the top rate rose above – during the mid-twentieth century.

Which of the following are demographic reasons why entitlement programs like Social Security make up a larger share of the federal budget now than when they were created?

In Greece, austerity measures undertaken to bring down the national debt triggered street demonstrations in 2011. How did later events play out?

When the federal government has more – than –, it has to borrow money to make up the difference. The borrowing is accomplished by selling – to investors. The federal government borrows from both domestic and foreign investors, though most national debt is held –.

Both Social Security and Medicare are government programs concentrated on the –population. Social Security is focused on providing –, while Medicare provides –for retired persons. For people to receive Social Security and Medicare payments, they must have – the program when they were –. Upon –, they become eligible for payouts.