AnswersFL-2102340-Economics with Financial Literacy Teacher DirectedFiscal Policy: Taxes

Fiscal Policy: Taxes Answers

0 verified answers
1
Free Preview

High government expenditures can lead to a bigger

A
revenue.
B
stimulus.
C
deficit.
D
surplus.
2
Free Preview

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.
3

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

A
increasing taxes.
B
reducing taxes.
C
increasing spending.
D
increasing inflation.
4

[BLANK]

A
sales tax
B
tariff
C
excise tax
5

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
6

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.
7

[BLANK]

A
proportionally
B
progressively
C
regressively
8

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.
9

How are progressive taxes and regressive taxes similar?

A
Both charge high-income individuals more.
B
Both are considered flat taxes.
C
Both generate revenue for public services.
D
Both are types of indirect taxes.
10

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.

Did you find these answers helpful?

More from this Course

Quiz
20 verified answers

Resources and Scarcity

Quiz
27 verified answers

1.2 Resources and Scarcity

Quiz
12 verified answers

The Three Questions of Economics