Presidents Have an Easier Time Changing ________ Than ________ During

question 62

Multiple Choice

Presidents have an easier time changing ________ than ________ during an election year.

• A) GDP; taxes and transfer payments
• B) the overall economy; GDP
• C) taxes and transfer payments; GDP
• D) GDP; overall economy

Understand the distinctions between progressive, regressive, and proportional taxes.

Identify direct and indirect taxes and their examples.

Know the historical events that have shaped federal fiscal policy.

Describe unfunded mandates and their impact on state and local governments.

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Definitions:

Service Cost

An expense recognized in the income statement of an employer for the cost of future pension benefits earned by employees during the current period.

Accrual-Basis Concepts

Accrual-basis concepts in accounting involve recording revenues when they are earned and expenses when they are incurred, regardless of when cash is received or paid.

Projected Benefit Obligation

The present value of all benefits attributed by the pension benefit formula to employee service rendered up to that date.

Defined Benefit Plan

A Defined Benefit Plan is a type of pension plan where the benefits that the employee will receive upon retirement are defined based on a formula involving salary history and years of service.