Fiscal Policy: Taxes (continued)

Question 1

What gives the US government the power to collect taxes?

Revolt · Accepted Answer

the Constitution

Question 2

High government expenditures can lead to a bigger

Revolt · Accepted Answer

deficit.

Question 3

best

Revolt · Accepted Answer

direct tax

Question 4

A sales tax is a type of

Revolt · Accepted Answer

indirect tax.

Question 5

Governments collect taxes to ensure that

Revolt · Accepted Answer

citizens contribute to meeting society's needs.

Question 6

How are progressive taxes and regressive taxes similar?

Revolt · Accepted Answer

Both generate revenue for public services.

Question 7

expansionarycontractionaryproportional

Revolt · Accepted Answer

expansionary

Question 8

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

Revolt · Accepted Answer

to protect domestic businesses

Question 9

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

Revolt · Accepted Answer

No, government services could encourage growth but other practices could be more effective based on the economic situation.

Fiscal Policy: Taxes (continued) Answers