Fiscal Policy: Taxes — Quiz

Question 1

Property taxes are usually determined based on

Revolt · Accepted Answer

the value of the property.

Question 2

Which of these best describes income tax?

Revolt · Accepted Answer

direct tax

Question 3

Under a contractionary taxation policy, the government can reduce the deficit by

Revolt · Accepted Answer

increasing taxes.

Question 4

How is an excise tax different from a sales tax?

Revolt · Accepted Answer

An excise tax applies to specific products.

Question 5

Which best describes how expansionary policies can facilitate economic growth?

Revolt · Accepted Answer

They increase disposable income.

Question 6

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.

Question 7

A sales tax is a type of

Revolt · Accepted Answer

indirect tax.

Question 8

Which best explains how contractionary policies can hamper economic growth?

Revolt · Accepted Answer

They reduce disposable income.

Question 9

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

Revolt · Accepted Answer

to protect domestic businesses

Question 10

Under an expansionary taxation policy, the government tries to stimulate economic growth by

Revolt · Accepted Answer

reducing taxes.

Fiscal Policy: Taxes — Quiz Answers