Fiscal Policy

Question 1

What is a difference between payroll and income taxes?

Revolt · Accepted Answer

Payroll taxes are itemized deductions from an individual’s paycheck, while income taxes are based on an individual’s salary.

Question 2

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

Revolt · Accepted Answer

increasing military spending

Question 3

Examine the pie chart.

Revolt · Accepted Answer

Social Security and Education/Health and Human Services

Question 4

When might workers be exempt from paying income taxes?

Revolt · Accepted Answer

when they don’t earn enough money

Question 5

Look at a portion of a sample paycheck:

Revolt · Accepted Answer

payroll

Question 6

expenditurerevenuebudget

Revolt · Accepted Answer

expenditure

Question 7

What happens to the amount of money the government collects in taxes if unemployment is high?

Revolt · Accepted Answer

It goes down.

Question 8

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

Revolt · Accepted Answer

increase spending on Social Security.

Question 9

What gives Congress the power to raise taxes to fund services?

Revolt · Accepted Answer

the Constitution

Question 10

In addition to raising money, the government imposes excise taxes to

Revolt · Accepted Answer

discourage the use of specific products.

Fiscal Policy Answers

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