Federal and local governments tax and spend. The following pie charts show the allocation of federal and local government expenditures in 2016. True or False: Pensions and income security make up the largest share of federal expenditures. FederalState and LocalAll other12%Interest11%Pensions andIncome Security33%All otherEducation33%31%Health30%NationalDefense14%Highways6.0%`Health andPublic Welfare(includes healthand welfare andsocial services,not disability) 30%

The expenditure of the economy is divided in two parts which are state and central government…

Answered: True or False: Pensions and income…

Business

Economics

True or False: Pensions and income security make up the largest share of federal expenditures.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 2SCQ: Why is there asymmetric information in the labor market? What signals can an employer look for that...

See similar textbooks

Related questions

Q: In order to boost output, the federal government engages in fiscal policy, which government spending…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: Is expansionary fiscal policy more attractive to politicians who believe in larger government or to…

A: The fiscal policy is the policy of the government regarding the taxation and the government…

Q: Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go…

A: Arthur Laffer is the economist who explain the relationship between tax rates and the revenue…

Q: Fiscal policy is conducted by the government and aims at boosting the economy; which of the…

A: The economies around the world have various entities, which are considered to be decision makers,…

Q: The government started imposing a Digital Services Tax (DST) of six per cent on 1 January 2020 on…

A: Demand is the absolute quantity of goods and services that a consumer is willing to buy at different…

Q: Why is a $100 billion increase in government spending on goods and services more expansionary than a…

A: According to the aggregate expenditure model Total income (Y) = Consumption (c +b(Y-Taxes) +…

Q: If tax revenues are lesser government expenditures in a year, the budget deficit would be negative.

A: Tax Revenue: Revenue that is generated against the tax is termed as tax revenue. Tax is an important…

Q: A recent study from the National Bureau of Economic Research examined what people did with the…

A: Since you have asked multiple questions, we will answer the first two sub-parts for you. If you want…

Q: fiscal policy

A: There are two policies which go hand in hand to regulate or stimulate the economy. The monetary…

Q: If the government tries to reduce the unemployment rate when the economy is not doing well and is in…

A: Fiscal policy refers to changes in government spending and taxes in order to influence the economy.…

Q: When the federal government uses taxation and spending actions to stimulate the economy it is…

A: It is the policy of the government regarding public revenue and public expenditure. Through the…

Q: A constitutional amendment has been proposed that would require Congress to balance the budget each…

A: Balanced budget is when the government expenditures is equal to its revenue.It is not possible to…

Q: 23)Which of the following is classified as Fiscal Policy? Select one: a. The federal government…

A: 23.Answer is (a) Tax cut is an example of fiscal policy.To decrease air pollution,federal government…

Q: Illustrate each of the following situations with a graph showing IS curve: a. An increase in…

A: The IS curve slopes downward from left to right because as the interest rates falls, investment…

Q: Along any given IS curve: a. government spending is fixed, but tax rates vary. b. tax rates are…

A: IS-LM stands for "investment savings-liquidity preference-money supply," or "investment…

Q: Propose the Fiscal Policy needed to fix this economy.

A: A) Cost push inflation (Graph Type) In graph we can there is an increment in the price level because…

Q: Which statement below is true of ONLY fiscal policy? Uses government expenditures to create demand…

A: The aggregate demand refers to the total amount of all the goods, and services which are demanded in…

Q: In 2005 national government spending is $4.00 trillion and tax collections are $4.00 trillion. This…

A: Budget refers to the amount of money that the government of a nation has, which it intends to spend…

Q: What does an increase in the income tax rate illustrate? An increase in the income tax rate is an…

A: What does an increase in the income tax rate illustrate? In general, [income] tax rate increases…

Q: Fill in the blanks : During [A Recession / Periods of Inflation], Congress could [Raise / Cut] taxes…

A: The fiscal and monetary policies are used by the governments to achieve certain economic goals. They…

Q: Describe some fiscal policies that governments are presently using to counter the impact of…

A: The fiscal policy is used by the government or the finance ministry of the country to regulate the…

Q: Consumer saves 15% of additional income, spends 65% of income on goods and services and spends 20%…

A: The tax multiplier can be calculated by using the following formula.

Q: Which of the following statements illustrate a regressive tax? Tom gets a new job and his income…

A: A regressive tax is mainly applied in a manner that the tax rate decreases as the total taxable…

Q: What are Expansionary and discretionary fiscal policies? Examples to dumb down.

Q: Which of the following is NOT a component of federal fiscal policy? A. Federal tax revenues…

A: The fiscal policy plays an important role in stabilizing an economy. By synchronized with monetary…

Q: The figure shows the flows of expenditure and income on Big Foot Island. In 2016, W was $56 billion;…

A: (GDP) is the standard proportion of the value added made through the production of labor and…

Q: What is fiscal imbalance? Fiscal imbalance is the _______ value of the government's commitments…

A: What is the fiscal imbalance? Fiscal imbalance refers to a situation where all of the government's…

Q: Policy Failure Fiscal policies can work only if private enterprises respond to them in certain way;…

A: Fiscal policy is the policy of the government regarding financial matters such as the tax rate of…

Q: economy with an income tax of 10%, what is the budget balance of thegovernment? economics

A: Autonomus utilization is the utilization consumption that happens when pay levels are zero. Such…

Q: Choose... Choose.. Decrease in government expenditure Increase government expenditure Decrease in…

A: Fiscal policy involves the use of tax and government spending to influence the economy. Autonomous…

Q: Strengthts and weaknesses of fiscal policies.

A: Fiscal policy refers to the policy by government to control the aggregate demand or stabilise the…

Q: Government spending in the u.s federal budget that congress can adjust as it wishes is called ?

A: Major portion of the federal budget goes towards mandatory programs of social security, medicare and…

Q: Government spending in the federal budget that Congress can adjust as it wishes is called

A: The power assigned to Congress to adjust the government spending in the federal budget is termed as…

Q: Evaluate the effectiveness of fiscal policy as a tool to reduce unemployment.

A: Fiscal policy is a policy used by the government in which it influences the level of government…

Q: Which of the following is an expansionary fiscal policy? increase in taxes only both increase in…

A: Fiscal policy is the term used to describe how the government uses spending and taxation to affect…

Q: For the U.S. government, which of the given is NOT an example of discretionary spending? defense…

A: Answer is Medicare. Medicare spending is not an example of discretionary spending and it does not…

Q: Compare two fiscal policies: a tax cut on income or an increase in government spending on roads and…

A: FP is a tool of government to stimulate the economy. It includes government expenditure and taxes,…

Q: If this year, the government collects £250bn in taxes and spends £400bn, it must have a a) budget…

A: In this question, we have to tell whether the economy will have a budget deficit or budget surplus…

Q: Gokhale and Smetters (2003) found that the long-run fiscal imbalance in the U.S. government budget…

A: Gokhale and smettersbth economist of America researched on fiscal imbalance of America.In 2003,they…

Q: Which of the following BEST shows fiscal policy? A The Federal Reserve buys bonds. The United States…

A: Here federal reserve open market buy operations, printing more money or increasing supply of money…

Question

Federal and local governments tax and spend. The following pie charts show the allocation of federal and local government expenditures in 2016.

True or False: Pensions and income security make up the largest share of federal expenditures.

Federal
State and Local
All other
12%
Interest
11%
Pensions and
Income Security
33%
All other
Education
33%
31%
Health
30%
National
Defense
14%
Highways
6.0%
`Health and
Public Welfare
(includes health
and welfare and
social services,
not disability) 30%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

First, explain the concept of risk-return trade off. How do you define return? How do you define risk? What does the trade-off says, in you own words? show the application of the risk-return trade-off for pensions choice. Does the existence of a risk-return trade-off means that all the investors select the same type of pension? show how the selection of the adequate risk-return trade-off is dependant on the investor’s risk-aversion. Detail the influence of other objective factors such as age, economic situation and personal wealth. As you can see, understanding the risk-return trade-off is essential in finance. A popular phrase in Finance is “there is no such thing as a free lunch”. Try to explain this expression based on your new understanding of the risk-return trade off. Last, reflect on how the risk-return trade-off can be applied to your own life. Identify an area in your professional life where you can apply the risk-return trade-off approach. Then find an area in your personal…
plz provide handwritten answer asap with steps
Pls solve both questions for postive rating pls
Jack Reminds Samuel that, as an early career professional, he’s only making a fraction of the average American household income used in the chart ($78,635). So, he recommends Jack calculate what his monthly Pension & Personal Insurance cost would be if it was in proportion to the salary he’s making. How much would this be?
Ruth collected pension benefits of $220 a month in 2015. If the price index rose from 90 to 105 in the period 2015-2015, what should her pension benefits for 2015 be? a. $256.67 b. $252.43 c. $253.00 d. $231.00 Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
plz provide handwritten answer asap
Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate file traits they are seeking in a new employee?
Enumerate THREE reasons as to why expected utility of wealth mignt be equally good or even a better measure than expected wealth in evaluating investment opportunities.(maximum of tiwo sentences per reason)
How does Health Service Organization (HSO) control patient costs? What is the percentage breakdown for reimbursement in HSO? How is your HSO addressing Coronavirus disease (COVID-19) challenges, including financial viability during the pandemic? How is the current inflation crisis affecting the healthcare supply chain bottleneck, patient care, and your HSO's finances?
plz provide hand written answer asap
F1. The purpose of the Social Security retirement program is to a. increase retirement income to 75 percent of pre-retirement income. b. pay for health care costs. c. replace defunct pension fund plans. d. provide a basic adequate income to eligible retirees.
Ma3. what is the percentage for which the CARES act provision allows an exception to early withdraweal tax for a coronavirus-related distribution (CRD),from a qualified retirement plan, a 403(b) plan, or an IRA? 10%,20%, 15%,or 30%