Fiscal Policy: Taxes

Question 1

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

Revolt · Accepted Answer

increasing taxes.

Question 2

How are progressive taxes and regressive taxes similar?

Revolt · Accepted Answer

Both generate revenue for public services.

Question 3

Which best describes how expansionary policies can facilitate economic growth?

Revolt · Accepted Answer

They increase disposable income.

Question 4

How is an excise tax different from a sales tax?

Revolt · Accepted Answer

An excise tax applies to specific products.

Question 5

sales taxtariffexcise tax

Revolt · Accepted Answer

tariff

Question 6

expansionarycontractionaryproportional

Question 7

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

Question 8

A sales tax is a type of

Revolt · Accepted Answer

indirect tax.

Question 9

Which best explains how contractionary policies can hamper economic growth?

Question 10

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 Answers