Fiscal Policy Answers

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1
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Look at a portion of a sample paycheck:

Question illustration
A
payroll
B
property
C
income
D
excise
2
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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

A
increase military spending.
B
raise income taxes on all people in the US.
C
increase spending on Social Security.
D
lower corporate taxes.
3

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

A
sending troops overseas
B
passing an excise tax on gasoline
C
appointing a new Secretary of Homeland Security
D
increasing military spending
4

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.
5

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
6

The government raises money on the federal level through which taxes? Check all that apply.

A
income taxes
B
tariff taxes
C
occupation taxes
D
excise taxes
E
sales taxes
F
corporate taxes
G
property taxes
7

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

A
the Federal Reserve Bank
B
the Internal Revenue Service
C
the Bill of Rights
D
the Constitution
8

Fiscal policy is the government’s approach to

A
monitoring the value of money.
B
investing its money.
C
taxing and borrowing.
D
taxing and spending.
9

When might workers be exempt from paying income taxes?

A
when they are injured on the job
B
when they make too much money
C
when they don’t earn enough money
D
when they are laid off by a company
10

Money spent on government programs is referred to as

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

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