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Revenues and expenditures. Budget deficit /proficit.
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Revenue - The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income.
Expenditure - Payment of cash or cash-equivalent for goods or services, or a charge against available funds in settlement of an obligation as evidenced by an invoice, receipt, voucher, or other such documents
Deficit The amount by which a government’s spending exceeds its revenues in a given year.
The federal government’s inability to control its deficit for any long period of time contrasts greatly with state governments’. State government budgets are almost always in balance, with no net deficit at the state level in most years.
2.Explain the Crowd -Out Problem in Education. How would this "solve" with the Educational Vouchers? How vouchers will lead to excessive school specialization or to Segregation?
Crowd-out problem: As the government provides more of a public good, the private sector will provide less.
Education is a public good that is provided to some extent by the private sector. As such, an important problem with the system of public education provision is that it may crowd out private education provision. Indeed, it is possible that providing a fixed amount of public education can actually lower educational attainment in society through inducing choice of lower quality public schools over higher-quality private schools
educational vouchers A fixed amount of money given by the government to families with school-age children, who can spend it at any type of school, public or private.
Vouchers might increase segregation by student skill level or motivation. As the motivated and high-skilled students flee poor-quality public schools for higher-quality private schools, the students left behind will
be in groups that are of lower motivation and skill. That is, school choice is likely to reduce segregation along some dimensions but increase it along others.
Vouchers might solve this crowd-out problem by allowing people to choose the optimal level of education for themselves, as well as interjecting competition into the education market.
At the same time, vouchers may lead to increased educational stratification, and the education market may face difficulties in implementing competition.
Existing evidence suggests that private school choice through vouchers can move students to better schools, but a much richer evaluation of the total social effects of vouchers is needed before policy conclusions can be drawn.
How Are Social Security Benefits Paid Out? Ida May is a striking example of the first generation of Social Security beneficiaries who were the big winners.
Social Security was to provide a means of income support for this unfortunate generation of the elderly.
Full Benefits Age (FBA) The age at which a Social Security recipient receives full retirement benefits (Primary Insurance Amount).
Early Entitlement Age (EEA)The earliest age at which a Social Security recipient can
receive reduced benefits. The very first beneficiary of Social Security was Ida May Fuller. da May worked for only three years after the establishment of the Social Security system, and paid a total of $24.75 in Social Security taxes. Ida May went on to live for 35 more years, dying at age 100 in 1975. Ove those 35 years, she collected a total of $22,888.92 in Social Security benefits. Quite a return on her $24.75 investment! Ida May is a striking example of the first generation of Social Security beneficiaries who were the big winners under this new social program.
1-b
2-a
3-c
4-d
5-d
6-c
7-b
8-e
9-a
10-a
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