Economics-1_Materials_Bridge II
Economics 1 Unit Materials
FastTRAC Bridge Project
Economics/Financial Literacy, Module 1
Designer: Tammy Twiggs
Page
Contents
1
Table of Contents
2
Government and Taxes Journal Topic (S1-A1)
3
4
Government in the Economy (S1-A2)
Answers
5
6
Vocabulary Exercise: Government and Finances (S2-A1)
Answers
7
8
Summary Learning Frame (S2-A5)
Answers
9
10
Distribution of Taxes and Deductions Vocabulary (S3-A1)
Answers
11
12
Distribution of Taxes and Deductions worksheet (FP)
Answers
FastTRAC Bridge Project 2011
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Economics-1_Materials_Bridge II
Government and Taxes Journal Topic
(S1-A1)
Part of living in the United States is the requirement to pay taxes. There are
several different kinds of taxes that the government collects: sales tax,
income tax, and property tax to name a few. Why do you think that the
government requires people to pay taxes? Think about this question, and
then write your response on the lines below. Remember to focus on reasons
why we pay taxes.
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Now think about this topic from a different point of view. What would this
country be like if nobody paid any taxes? Would it be the same country you
see today? Would it be better or worse? Write your response below
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
FastTRAC Bridge Project 2011
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Economics-1_Materials_Bridge II
Government in the Economy (S1-A2)
Directions: After reading “Government in the Economy” on p. 279 of Contemporary’s
Pre-GED Social Studies,” complete the following cloze activity. Fill in the blanks with a
word or phrase that makes sense and summarizes what you have read.
In the United States, businesses must follow _________________ established by the
federal government. This means that business is regulated in the United States. In
addition, the government supplies citizens with certain benefits, called ______________
___________________ . Some examples of this are education, police and fire services,
and public libraries. Another way that government regulates business is by preventing a
________________________ , which is when only one business controls all the goods
and services in any industry or market. Two areas in which government regulates housing
is with ______________________ ________________________ and
___________________ ____________________ . Since the Great Depression,
government has also used ________________________
__________________________ , which is a way to manipulate the need for goods and
services. During a down time in the economy, called a recession, the government will
____________________ _______________________ to try to get the economy moving
again. One example of this is when the government offers ___________________
______________________ for a longer period of time. When the economy improves,
the government will remove these extended benefits.
FastTRAC Bridge Project 2011
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Economics-1_Materials_Bridge II
Government in the Economy (S1-A2)
Answer Sheet for Cloze Activity







rules
public goods
monopoly
zoning ordinances and housing codes
demand management or fiscal policy
increase spending
unemployment benefits
FastTRAC Bridge Project 2011
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Economics-1_Materials_Bridge II
Vocabulary Exercise: Government and Finances (S2-A1)
After reading p. 281 of Contemporary’s Pre-GED Social Studies, complete the
following activity with a partner.
Partner Discussion
The United States uses a tax-and-spend approach to government. According to
usdebtclock.org, the government is spending more money than it is bringing in. How
will that affect us in the future?
Matching
Directions: Match the following vocabulary words and phrases on the left with the
correct definitions and descriptions the right. Some letters may be used more than once.
1. ____________transfer payments
a. sales tax on food
b. welfare payments
2. ____________national debt
c. as a person’s income increases, they
pay a smaller portion of that income in
taxes
3. ____________ progressive tax
d. when the federal government takes
money from one group and gives it to
another group through taxes
4. ____________regressive tax
e. how much money the federal
government owes through borrowing
f. as a person’s income increases, they
pay a larger portion of that income in
taxes
g. federal income tax
h. government borrowing in savings
bonds, treasury bills, and municipal
bonds
FastTRAC Bridge Project 2011
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Economics-1_Materials_Bridge II
Vocabulary Exercise: Government and Finances (S2-A1)
Answer sheet
1. b, d
2. e, h
3. f, g
4. a, c
FastTRAC Bridge Project 2011
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Economics-1_Materials_Bridge II
Summary Learning Frame (S2-A5)
Directions:
 Fill in the spaces with the words you learned from reading the IRS website 2009
pie charts. This will help you to create a summary, which is a short version of
what you learned from the pie charts.
 When you are finished, type this paragraph into a Word document, and print a
copy for your teacher and yourself.
Topic: 2009 U.S. Government Income and Expenditures
I learned that the United States Government takes in income through
____________ . There are several kinds of taxes that the government uses for income.
They are ___________________ , __________________________,
______________________________, ___________________________, and
_______________________. The government gets the most income from
_________________
_________________
taxes. The government spends this
income on something called __________________________. They consist of
____________________________, ____________________________,
___________________________, _____________________________,
___________________________, and ___________________________. The greatest
government expense is for ________________________, _____________________, and
__________________
___________________. The government spends the least on
________________________ __________________________ and ________________
________________________.
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Economics-1_Materials_Bridge II
Summary Learning Frame (S2-A5)
Answer Key

taxes

personal income taxes, social security/medicare/unemployment/other retirement
taxes, corporate income taxes, excise/custom/estate/gift/miscellaneous taxes, and
borrowing to cover deficit

personal income taxes

outlays

national defense/veterans/foreign affairs, social security/medicare/other retirement,
law enforcement/general government, social programs, physical/human/community
development, and net interest on the national debt

social security, medicare, and other retirement

law enforcement and general government
FastTRAC Bridge Project 2011
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Economics-1_Materials_Bridge II
Distribution of Taxes and Deductions Vocabulary (S3-A1)
Image used from: paycheck-stub.com
Directions: Match the deduction with the correct definition.
1. ______Federal Income Tax
a. money you donate voluntarily
b. mandatory deduction to pay for
state government projects such
as roads and safety
c. coverage for medical expenses
d. health coverage for people who
qualify based on income level
e. offers benefits to someone who
has become disabled
f. mandatory deduction to pay for
government programs such as
defense and human services
g. provides a payment to the
elderly
h. an optional savings plan for
retirement
i. dental coverage
j. pre-tax dollars to pay for
unforeseen medical or childcare
expenses
2. ______State Income Tax
3. ______FICA: Social Security tax
4. ______FICA: Medicare tax
5. ______Medical insurance
6. ______Dental insurance
7. ______Retirement savings plan
8. ______Charity
9. ______Health/Child Care Flex Plan
10. ______Long-term disability insurance
FastTRAC Bridge Project 2011
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Economics-1_Materials_Bridge II
Paycheck Deductions Vocabulary (S3-A1)
1. f
2. b
3. g
4. d
5. c
6. i
7. h
8. a
9. j
10. e
FastTRAC Bridge Project 2011
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Economics-1_Materials_Bridge II
Distribution of Taxes and Deductions worksheet (FP)
Taken from: paycheck-stub.com
Directions: Using the pay stub above, you are going to calculate the percentage
of gross pay for each deduction.
Step One: Calculate the percentage
Amount
Percentage
1.
2.
3.
4.
5.
6.
7.
8.
__________
__________
__________
__________
__________
__________
__________
__________
___________
___________
___________
___________
___________
___________
___________
___________
Federal Income Tax
State Income Tax
Social Security
Medicare/Medicaid
Insurance
Retirement Savings Plan
Charity
Health/Child Care Flex Plan
Step Two: Answer the following questions.
1. Which tax deduction is the largest? _______________________________
2. Which mandatory deduction is the smallest?
_________________________________
3. Is Social Security a mandatory or optional tax? _____________________
4. What percentage of income is insurance? ___________________________
5. Which optional tax deduction is the least? ________________________
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Economics-1_Materials_Bridge II
Distribution of Taxes and Deductions Answer Key (FP)
Step One: Calculate the percentage
Amount
Percentage
1.
2.
3.
4.
5.
6.
7.
8.
$349.00
$117.00
$180.00
$45.00
$175.00
$200.00
$25.00
$75.00
11.63%
3.9%
6%
1.5%
5.83%
6.7%
0.833%
2.5%
Federal Income Tax
Stare Income Tax
Social Security
Medicare/Medicaid
Insurance
Retirement Savings Plan
Charity
Health/Child Care Flex Plan
Step Two: Answer the following questions.
1. Which tax deduction is the largest? Federal income tax
2. Which mandatory deduction is the smallest? Medicare/Medicaid
3. Is Social Security a mandatory or optional tax? Mandatory
4. What percentage of income is insurance? 5.83%
5. Which optional tax deduction is the least? Charity
FastTRAC Bridge Project 2011
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