ECON Unit 4 Test Warm-up

Front

What branch of the federal government has the power to tax? A. The Executive Branch (The President), B. The Legislative Branch (Congress), C. The Judicial Branch (The Supreme Court), D. The Department of Commerce & Labor

Back

The Legislative Branch (Congress)

Front

What is the type of tax structure that increases the amount that people pay as they earn more income?

Back

Progressive Tax Structure

Front

Which Amendment created income tax? A. 19th Amendment, B. 18th Amendment, C. 17th Amendment, D. 16th Amendment

Back

16th Amendment

Front

What is Tax Withholding? Options: A. Where you have to put aside money from your paycheck on your own each month for taxes., B. Where your place of employment (job) takes out taxes before you receive it., C. Where your last check of the year all goes to taxes., D. None of the above.

Back

Where your place of employment (job) takes out taxes before you receive it.

Front

True or False: A donation to a charity is classified as a tax deduction.

Back

True

Front

Why does the government put a behavior (sin tax)/luxury tax on some items?

Back

The government wants to discourage you from buying those items.

Front

What is discretionary spending?

Back

Money that the government gets to decide what they want to spend it on every year.

Front

On average, how much of the federal discretionary spending budget does the United States usually spend on military?

Back

50%

Front

What does a balanced budget mean?

Back

Revenue is equal to spending.

Front

What taxes pay for highway maintenance? A. State Taxes, B. Local Taxes, C. Federal Taxes, D. Foreign Taxes

Back

State Taxes