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Fiscal Policy: Taxes Answers

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What are some examples of excise taxes imposed by the government? Check all that apply.gamblingfast-food restaurantscigarettesmoviesbaseball gamesalcoholgasolinehotels

A
gambling
B
fast-food restaurants
C
cigarettes
D
movies
E
baseball games
F
alcohol
G
gasoline
H
hotels
2
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In addition to raising money, the government imposes excise taxes to

A
protect manufacturers of specific products.
B
encourage the use of specific products.
C
discourage the use of specific products.
D
protect consumers from specific products.
3

When might workers be exempt from paying income taxes?

A
when they are injured on the job
B
when they make too much money
C
when they don’t earn enough money
D
when they are laid off by a company
4

A new presidential administration takes office, after having made campaign promises to support entitlement programs.One suggestion the new president is most likely to make in the budget proposal is to

A
increase military spending.
B
raise income taxes on all people in the US.
C
increase spending on Social Security.
D
lower corporate taxes.
5

millionbilliontrillion

A
million
B
billion
C
trillion
6

an excise taxan income taxa tariff

A
an excise tax
B
an income tax
C
a tariff
7

Money spent on government programs is referred to as

A
bonding.
B
an obligation.
C
revenue.
D
an expenditure.
8

Which best describes a way in which the government might respond to rising threats to national security through fiscal policy?

A
sending troops overseas
B
passing an excise tax on gasoline
C
appointing a new Secretary of Homeland Security
D
increasing military spending
9

Examine the pie chart.

Question illustration
A
Social Security and social programs
B
national defense and transportation
C
international aid and veterans’ programs
D
education and managing the nations’ debt
10

Revenue is the amount of money that

A
the government spends on defense.
B
the government collects from taxes or borrowing.
C
the government owes in debt.
D
the government uses to provide social services.

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