Fiscal Policy Answers

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1
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Examine the pie chart.

Question illustration
A
Social Security, Labor and Transportation, and Other
B
Social Security and Education/Health and Human Services
C
Defense/Homeland Security, and Social Security
D
Defense/Homeland Security, Treasury, and Veterans Affairs
2
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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.
3

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.
4

Look at a portion of a sample paycheck:

Question illustration
A
payroll
B
property
C
income
D
excise
5

an excise taxan income taxa tariff

A
an excise tax
B
an income tax
C
a tariff
6

Money spent on government programs is referred to as

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

expenditurerevenuebudget

A
expenditure
B
revenue
C
budget

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