Monday, December 11, 2017

Assignment Due Tues. 12/12

Read ch. 9 p 152-156
Bea able to calculate C, S, APC and APS
Define MPC and MPS
Be able to calculate MPC and MPS
Contrast Average Propensities and Marginal Propensities


On your "Keynesian Chart" from class, complete the C, S, APC, and APS columns

Tax and Spend Review Sheet

Use the following questions as a guide when studying for Wednesday's test"






 Taxation


 


1.  What is tax revenue and why is collecting it necessary to a functioning society?


  


  1. Consider the benefit principle of taxation:
     


  1. Define the benefit principle of taxation.  On what are such taxes based?
     


  1. What is an example of a tax that is based on the benefit principle?
     


  1. What are two drawbacks of taxes based on this principle?
      


  1. Consider the ability to pay principle of taxation:
     


    1. Define the ability to pay principle of taxation.  On what are such taxes based?
       
    2.  What is an example of a tax that is based on the benefit principle?


 


    1. What are two drawbacks of taxes based on this principle.
       


  1. What is a progressive tax?  Give an example of a progressive tax and explain how one’s tax rate is determined.
      


  1. What is a proportional tax?  Give an example of a proportional tax and explain how one’s tax rate is determined.
      
    6        What is a regressive tax?  Give an example of a regressive tax and explain how one’s tax rate is determined.
     


  1. Most states do not place sales taxes on groceries.  Explain, using specific tax vocabulary, why this is often the case.
      


  1. What is a budget?  Why is it important for government (and individuals) to create them?
      


  1. What does it mean if a federal program is considered part of “mandatory spending”? 
      


  1. What does it mean if a federal program is considered part of “discretionary spending”?
     


  1. What is a budget deficit?
     
     


  1. What is a budget surplus?
     


  1. Explain the difference between a budget deficit and national debt?
      
          13.  Identify two arguments for each point of view on the chart below:
     


The national debt is a major problem that we must do something about immediately!
The national debt, while large, does not represent a major threat to the US economy today.
 
1.
 
 
 
2.