Fiscal Policy — Quiz

Question 1

In addition to raising money, the government imposes excise taxes to

Revolt · Accepted Answer

discourage the use of specific products.

Question 2

When might workers be exempt from paying income taxes?

Revolt · Accepted Answer

when they don’t earn enough money

Question 3

A new presidential administration takes office, after having made campaign promises to support entitlement programs. One suggestion the new president is most likely to make in the budget proposal is to

Revolt · Accepted Answer

increase spending on Social Security.

Question 4

Which is an example of a government entitlement that people are guaranteed to receive after paying into a program?

Revolt · Accepted Answer

Social Security payments

Question 5

Which best describes a way in which the government might respond to rising threats to national security through fiscal policy?

Revolt · Accepted Answer

increasing military spending

Question 6

What is a difference between payroll and income taxes?

Revolt · Accepted Answer

Payroll taxes are itemized deductions from an individual’s paycheck, while income taxes are based on an individual’s salary.

Question 7

The primary way government raises revenue is through

Revolt · Accepted Answer

taxes and borrowing.

Fiscal Policy — Quiz Answers

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