US Gov/Ms. Strong
Name____________________________Per___
ECONOMIC POLICY 101
Directions – You will research economic policy usually a variety of sources, and define the terms below.
 Magruder’s textbook (Ch 16 Financing Government, glossary, etc.)
 Online sources
I. Economics: The Basics
Economic Term
Definition
Economics
Supply and Demand
Economic Policy
II. Where does the Government get its revenues i.e. taxes?
Type of Tax
Progressive Tax
Individual Income Tax
Corporate Income Tax
Payroll (Entitlement) Tax
Regressive Tax
Excise Tax
Estate Tax
Definition
Examples
III. Why does the government borrow money?
Budget Term
Definition
Budget
Interest
Budget Deficit
Budget Surplus
National (Public) Debt
IV. Where does the government spend its money?
Type of Spending
Definition
Mandatory or
“Uncontrollable
Spending
1) Interest on the Debt
2) Entitlements
a) Social Security
b) Medicare
c) Medicaid
Discretionary or
“Controllable
Spending”
• How much did the U.S. Government spend on defense in 2004?
1) Defense Spending
2) Non-defense
Spending
• Why does the government spend so much on defense?
From the table on p. 468 (2013e)/460 (2005e) aside from defense spending, what were the top 3
departments spent the most money in 2004?
1)
2)
3)