The first table that follows shows government expenditures as a percentage of GDP for selected years. For the same years, the first table also shows different categories of federal expenditures as percentages of total federal government expenditures. The second table shows government tax revenue as a percentage of GDP for the selected years. The second table also shows different categories of federal tax receipts as percentages of total federal tax receipts. (Source: "U.S. Government Printing Office.")
The first table that follows shows government expenditures as a percentage of GDP for selected years. For the same years, the first table also shows different categories of federal expenditures as percentages of total federal government expenditures. The second table shows government tax revenue as a percentage of GDP for the selected years. The second table also shows different categories of federal tax receipts as percentages of total federal tax receipts. (Source: "U.S. Government Printing Office.")
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Measuring A Nation's Income
Section: Chapter Questions
Problem 12PA
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Question
![1. Government expenditures in the United States
The first table that follows shows government expenditures as a percentage of GDP for selected years. For the same years, the first table also shows
different categories of federal expenditures as percentages of total federal government expenditures. The second table shows government tax revenue
as a percentage of GDP for the selected years. The second table also shows different categories of federal tax receipts as percentages of total federal
tax receipts. (Source: "U.S. Government Printing Office.")
Government Expenditures (GDP %)
State and
Local
7%
10%
14%
Year
1950
1970
2011
Federal
16%
19%
24%
Government Tax Receipts (GDP %)
State and
Year
1950
1970
2011
Federal
14%
19%
15%
Local
7%
10%
*Including transportation, agriculture, veterans' benefits, international affairs, housing, and so on.
14%
Income Security
13%
22%
50%
Expenditures as a Share of the Federal Government Budget
Education Net Interest on
and Health
Federal Debt
Individual
Income Taxes
40%
47%
47%
National Defense
32%
40%
20%
2%
11%
Social Insurance
13%
Federal Government Receipts
Taxes
11%
23%
36%
Corporate
11%
9%
6%
Income Taxes Excise Taxes
26%
17%
8%
19%
8%
3%
Others*
42%
Others
4%
5%
18%
11%
6%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff80f0a4-d452-450d-98de-d6817c227552%2Ffaac9503-0ed4-454e-938d-e24e103ea2a4%2F8q44xe8b_processed.png&w=3840&q=75)
Transcribed Image Text:1. Government expenditures in the United States
The first table that follows shows government expenditures as a percentage of GDP for selected years. For the same years, the first table also shows
different categories of federal expenditures as percentages of total federal government expenditures. The second table shows government tax revenue
as a percentage of GDP for the selected years. The second table also shows different categories of federal tax receipts as percentages of total federal
tax receipts. (Source: "U.S. Government Printing Office.")
Government Expenditures (GDP %)
State and
Local
7%
10%
14%
Year
1950
1970
2011
Federal
16%
19%
24%
Government Tax Receipts (GDP %)
State and
Year
1950
1970
2011
Federal
14%
19%
15%
Local
7%
10%
*Including transportation, agriculture, veterans' benefits, international affairs, housing, and so on.
14%
Income Security
13%
22%
50%
Expenditures as a Share of the Federal Government Budget
Education Net Interest on
and Health
Federal Debt
Individual
Income Taxes
40%
47%
47%
National Defense
32%
40%
20%
2%
11%
Social Insurance
13%
Federal Government Receipts
Taxes
11%
23%
36%
Corporate
11%
9%
6%
Income Taxes Excise Taxes
26%
17%
8%
19%
8%
3%
Others*
42%
Others
4%
5%
18%
11%
6%
![Which of the following statements are true? Check all that apply.
0
0
Between 1950 and 2011, total government expenditures (federal, state, and local combined) grew from about one-fourth of GDP to more
than one-third of GDP.
As of 2011, the federal government financed most of its outlays with individual income taxes and social insurance taxes.
Federal taxes as a percentage of GDP were lower in 2011 than they were in 1970.
Between 1970 and 2011, national defense expenditures as a percentage of the federal budget grew, while income security expenditures
as a percentage of the federal budget declined.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff80f0a4-d452-450d-98de-d6817c227552%2Ffaac9503-0ed4-454e-938d-e24e103ea2a4%2Fxbc8y2b_processed.png&w=3840&q=75)
Transcribed Image Text:Which of the following statements are true? Check all that apply.
0
0
Between 1950 and 2011, total government expenditures (federal, state, and local combined) grew from about one-fourth of GDP to more
than one-third of GDP.
As of 2011, the federal government financed most of its outlays with individual income taxes and social insurance taxes.
Federal taxes as a percentage of GDP were lower in 2011 than they were in 1970.
Between 1970 and 2011, national defense expenditures as a percentage of the federal budget grew, while income security expenditures
as a percentage of the federal budget declined.
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