AnswersOK-Personal Financial Literacy S1 – EDGNTY-83861 26-27Fiscal Policy: Taxes

Fiscal Policy: Taxes Answers

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1
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A sales tax is a type of

A
progressive tax.
B
indirect tax.
C
proportional tax.
D
direct tax.
2
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Which programs or projects are most likely funded by taxes paid by the citizens of the United States? Select three options.constructing a highwaypublic school fundingdeveloping a vacation resortbuilding of private homesmaintaining state parks

A
constructing a highway
B
public school funding
C
developing a vacation resort
D
building of private homes
E
maintaining state parks
3

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

A
reducing deficits.
B
reducing taxes.
C
reducing demand.
D
reducing spending.
4

How is an excise tax different from a sales tax?

A
An excise tax is not deductible.
B
An excise tax applies to specific products.
C
An excise tax applies only to imported goods.
D
An excise tax is an indirect tax.
5

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.
6

Which of these best describes income tax?

A
regressive tax
B
indirect tax
C
direct tax
D
proportional tax
7

sales taxtariffexcise tax

A
sales tax
B
tariff
C
excise tax
8

What gives the US government the power to collect taxes?

A
the Constitution
B
laws passed by Congress
C
an executive order
D
common law
9

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
10

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.

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