Fiscal Policy: Taxes

Question 1

This graph shows US government revenue and expenditures between 1980 and 2010.

Revolt · Accepted Answer

The government on average spends more than it collects.

Question 2

How are progressive taxes and regressive taxes similar?

Revolt · Accepted Answer

Both generate revenue for public services.

Question 3

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

Revolt · Accepted Answer

to protect domestic businesses

Question 4

Governments collect taxes to ensure that

Revolt · Accepted Answer

citizens contribute to meeting society's needs.

Question 5

proportionallyprogressivelyregressively

Revolt · Accepted Answer

proportionally

Question 6

High government expenditures can lead to a bigger

Revolt · Accepted Answer

deficit.

Question 7

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

Revolt · Accepted Answer

reducing taxes.

Question 8

sales taxtariffexcise tax

Revolt · Accepted Answer

tariff

Question 9

Which best explains how contractionary policies can hamper economic growth?

Revolt · Accepted Answer

They reduce disposable income.

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