Fiscal Policy: Taxes

Question 1

How is an excise tax different from a sales tax?

Revolt · Accepted Answer

An excise tax applies to specific products.

Question 2

Which best explains how contractionary policies can hamper economic growth?

Revolt · Accepted Answer

They reduce disposable income.

Question 3

proportionallyprogressivelyregressively

Revolt · Accepted Answer

proportionally

Question 4

expansionarycontractionaryproportional

Revolt · Accepted Answer

expansionary

Question 5

Governments collect taxes to ensure that

Revolt · Accepted Answer

citizens contribute to meeting society's needs.

Question 6

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

Revolt · Accepted Answer

to protect domestic businesses

Question 7

sales taxtariffexcise tax

Revolt · Accepted Answer

tariff

Fiscal Policy: Taxes Answers