Question

Which of the following accounts for the largest share of US Federal Government outlays?

A)Interest on the national debt.
B)Income support to low­income families.
C)Foreign aid (international affairs)
D)Social Security.

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Which of the following accounts for the largest share of US Federal Government receipts (revenue)?

A)Tariffs on imported goods.
B)Corporate income taxes
C)Personal income taxes
D)Social Security payroll taxes.

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What is the main reason that interest payments on the national debt have declined as a percent of GDP
and of US Federal Government revenue since the late 1980s?

A)The debt has declined as a percent of GDP.
B)US real GDP has grown faster than the national debt.
C)Interest rates on Federal Government borrowing (the rate paid on Treasury bonds) have decreased
since the 1980s.
D)The revenue of the Federal Government has increased as a percent of GDP.
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What were the three largest trade partners of the United States in 2017 in terms of total value of two­way
trade?

A)Taiwan, South Korea and China
B)Germany, Japan and the United Kingdom
C)China, Canada and Mexico
D)England, France and Spain

Answer 1

1. D)Social Security.
(Social security constitutes largest share of US Federal Government outlays)

2. C)Personal income taxes
(In 2017, 48% of revenue came from income tax)

3. C)Interest rates on Federal Government borrowing (the rate paid on Treasury bonds) have decreased
since the 1980s.
(Due to decline in interest rates, interest payments on the national debt have declined as a percent of GDP)

4. C)China, Canada and Mexico
(They are top three trading partners of US)