Unit Test — Unit test Answers

Which best describes why governments collect taxes?

US federal income tax is progressive by law, but which best explains why wealthy individuals can often pay far less in taxes than the top tax rate?

Which of the following are taxes on income or wealth that individuals pay in the United States? Select three options.property tax on a homeincome earned from wagessales tax on clothingexcise tax on gasolineprofits from investments

The diagram shows different types of policies.

The government of Country C has passed a law protecting the physical safety of factory workers. This is an example of

Spending that can change from year to year is known as

What part does interest play in deficit spending?

Which body manages the Fed?

Expansionary spending takes place when a government makes the decision to

Which best describes a regressive tax?

In which of the following ways do governments spend money to meet public needs? Check all that apply.by protecting the publicby arming the publicby providing health careby supporting educationby building roads and bridges

What happens when a bank is required to hold more money in reserve?

spendingprofitdebtsaving

Which of these are goals of an expansionary policy? Check all that apply.increased available creditdecreased available creditincreased money supplyincreased inflationincreased interest ratesdecreased interest rates

Which group does the Fed serve?