ECON 214 InQuizitive Assignment 8 solutions complete answers

ECON 214 InQuizitive Assignment 8 solutions complete answers 

 

In the United States, a person’s marginal tax rate is generally higher than the same person’s average tax rate.

 

What is a government budget?

 

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.

 

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

 

Label each scenario on the right with the type of taxes it is subject to. More than one label might match a scenario.

 

Over the last 100 years, marginal tax rates have been fluctuating constantly. Place the years in order by how high the top marginal rate was at the time. Place the year with the highest rate first.

 

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

 

Fill in the blanks to complete the passage about the implications of demographic trends for the future of Social Security.

 

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.

 

Fill in the blanks to complete the passage about foreign-owned U.S. debt.

 

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 –.

 

Fill in the blanks to complete the passage about the history of U.S. income tax.

 

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?

 

Which of the following have been proposed as solutions to the funding problem of Social Security and Medicare?

 

Fill in the blanks to complete the passage about the role of the U.S. Treasury.

 

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 –.

 

Match each U.S. president to the action he took regarding federal income tax rates.

 

A 2003 change to Medicare eliminated reimbursement for prescription drugs as one of its benefits.

 

Fill in the blanks to complete the passage about social insurance tax.

 

As of 2016, social insurance tax on a typical worker’s income is calculated as – of the worker’s pretax paycheck amount. Only – of that amount is actually deducted from the worker’s paycheck. The other – is paid by the employer. Self-employed individuals, however, must pay the full – themselves. For Social Security, though not for Medicare, the amount of income taxed is capped. The cap for 2016 is –.

 

Match each proposed solution to the problems of Social Security/Medicare funding with the rationale behind it.

 

The largest U.S. budget deficit since 1960 occurred during the Great Recession.

 

Which taxes are payroll taxes? That is, which taxes are normally paid in the form of deductions from a worker’s paycheck?

 

Match each term to its definition.

 

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?

 

Fill in the blanks to complete the passage about one of the three main categories of U.S. government outlays.

 

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.

 

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.

 

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.

 

Place the spending categories in order by their share, greatest to least, of the 2014 U.S. federal budget.

 

Drag the labels to classify each category of spending as mandatory or discretionary.

 

Select the correct definition of publicly held national debt.

 

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

 

Select the time frame during which there was a significant budget surplus.

 

Match each major factor responsible for recent changes in federal spending to the correct trend description.

 

Fill in the blanks to complete the passage about funding for Social Security and Medicare.

 

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.

 

Fill in the blanks to complete the passage about mandatory outlays.

 

Mandatory outlays constitute – portion of the U.S. federal budget. They are determined by – and not subject to adjustment during the budget process. This category includes – and Medicare.