Fiscal Policy

Question 1

When might workers be exempt from paying income taxes?

Revolt · Accepted Answer

when they don’t earn enough money

Question 2

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

Revolt · Accepted Answer

It goes down.

Question 3

an excise taxan income taxa tariff

Revolt · Accepted Answer

a tariff

Question 4

Based on the taxing and spending cycle, how will changing expenditures affect taxes collected by the government?

Revolt · Accepted Answer

Spending less will reduce services, leading to a reduction in tax revenue for the government.

Question 5

Examine the pie chart.

Revolt · Accepted Answer

Social Security and Education/Health and Human Services

Question 6

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

Revolt · Accepted Answer

discourage the use of specific products.

Question 7

The graph shows how the federal budget grew between 1980 and 2010.

Revolt · Accepted Answer

the federal government has almost always spent more than it receives.

Question 8

Look at a portion of a sample paycheck:

Revolt · Accepted Answer

payroll

Question 9

Money spent on government programs is referred to as

Revolt · Accepted Answer

an expenditure.

Question 10

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.

Fiscal Policy Answers