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Fiscal Policy: Taxes Answers

10 verified answers
1
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proportionallyprogressivelyregressively

A
proportionally
B
progressively
C
regressively
2
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High government expenditures can lead to a bigger

A
revenue.
B
stimulus.
C
deficit.
D
surplus.
3

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

i
increasing taxes.
r
reducing taxes.
i
increasing spending.
i
increasing inflation.
4

Governments collect taxes to ensure that

t
there is sufficient money to fund private businesses.
c
citizens contribute to meeting society's needs.
p
politicians get paid in a timely manner.
a
a government program exists for every need that arises.
5

Which statements best describe sales tax? Check all that apply.

A
Sales tax does not affect low-income groups.
B
Sales tax is an indirect tax levied on goods and certain services.
C
Sales tax is a type of regressive taxation.
D
Sales tax is a direct tax paid by consumers to the government.
E
Sales tax affects high-income groups.
6

sales taxtariffexcise tax

A
sales tax
B
tariff
C
excise tax
7

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

A
to protect domestic businesses
B
to decrease international trade
C
to end reliance on foreign goods
D
to make US markets less desirable
8

expansionarycontractionaryproportional

A
expansionary
B
contractionary
C
proportional
9

Property taxes are usually determined based on

t
the property owner's income.
t
the amount of money invested in the property.
t
the earnings generated by the property.
t
the value of the property.
10

best

r
regressive tax
i
indirect tax
d
direct tax
p
proportional tax
11

Which best explains how contractionary policies can hamper economic growth?

A
They increase consumer demand.
B
They can increase inflation.
C
They reduce taxes which raises deficits.
D
They reduce disposable income.
12

High government expenditures can lead to a bigger

A
revenue.
B
stimulus.
C
deficit.
D
surplus.
13

Governments collect taxes to ensure that

A
there is sufficient money to fund private businesses.
B
citizens contribute to meeting society's needs.
C
politicians get paid in a timely manner.
D
a government program exists for every need that arises.
14

Which of these best describes income tax?

A
regressive tax
B
indirect tax
C
direct tax
D
proportional tax
15

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

Question illustration
A
The government spends less than it receives year over year.
B
The government should produce more money to cover spending.
C
The government on average spends more than it collects.
D
The government needs to lower taxes to cover spending.
16

Which best describes how expansionary policies can facilitate economic growth?

A
They prompt decreased demand.
B
They inspire consumer confidence.
C
They increase disposable income.
D
They help reduce consumer debt.
17

Which statements best describe sales tax? Check all that apply.

A
Sales tax does not affect low-income groups.
B
Sales tax is an indirect tax levied on goods and certain services.
C
Sales tax is a type of regressive taxation.
D
Sales tax is a direct tax paid by consumers to the government.
E
Sales tax affects high-income groups.
18

A sales tax is a type of

A
progressive tax.
B
indirect tax.
C
proportional tax.
D
direct tax.
19

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

A
No, government services could encourage growth but other practices could be more effective based on the economic situation.
B
Yes, the private sector can easily and affordably replace all services and facilities cut by the government.
C
No, the government is capable of providing many but not all services individuals and businesses need.
D
Yes, the government will still ensure that individuals and businesses continue to receive all necessary services.
20

Which programs or projects are most likely funded by taxes paid by the citizens of the United States? Select three options.

A
constructing a highway
B
public school funding
C
developing a vacation resort
D
building of private homes
E
maintaining state parks

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