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5.1 Fiscal Policy: Taxes Answers

10 verified answers
1
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proportionallyprogressivelyregressively

A
proportionally
B
progressively
C
regressively
2
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Governments collect taxes to ensure that

t
there is sufficient money to fund private businesses.
c
citizens contribute to meeting society's needs.
p
politicians get paid in a timely manner.
a
a government program exists for every need that arises.
3

best

r
regressive tax
i
indirect tax
d
direct tax
p
proportional tax
4

Which of these is most likely the US government’s aim in taxing imported goods?

A
to protect domestic businesses
B
to decrease international trade
C
to end reliance on foreign goods
D
to make US markets less desirable
5

Which statements best describe sales tax? Check all that apply.

A
Sales tax does not affect low-income groups.
B
Sales tax is an indirect tax levied on goods and certain services.
C
Sales tax is a type of regressive taxation.
D
Sales tax is a direct tax paid by consumers to the government.
E
Sales tax affects high-income groups.
6

Which best explains how contractionary policies can hamper economic growth?

A
They increase consumer demand.
B
They can increase inflation.
C
They reduce taxes which raises deficits.
D
They reduce disposable income.
7

How is an excise tax different from a sales tax?

A
An excise tax is not deductible.
A
An excise tax applies to specific products.
A
An excise tax applies only to imported goods.
A
An excise tax is an indirect tax.
8

A sales tax is a type of

p
progressive tax.
i
indirect tax.
p
proportional tax.
d
direct tax.
9

If expansionary taxation policies encourage growth, are they always appropriate to implement?

N
No, government services could encourage growth but other practices could be more effective based on the economic situation.
Y
Yes, the private sector can easily and affordably replace all services and facilities cut by the government.
N
No, the government is capable of providing many but not all services individuals and businesses need.
Y
Yes, the government will still ensure that individuals and businesses continue to receive all necessary services.
10

What gives the US government the power to collect taxes?

A
the Constitution
B
laws passed by Congress
C
an executive order
D
common law

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5.1 Fiscal Policy: Taxes Answers — MO-Economics