Econ Chapter 14: Taxes & Government Spending

Front

What is the main purpose of a sin tax?

Back

behavior adjustment

Front

Which of the following is most like a national sales tax? a value-added tax (VAT), a sin tax, income tax, an excise tax

Back

a value-added tax (VAT)

Front

Which statement is most accurate? Options: The debt ceiling is a requirement that new spending proposals or tax cuts must be offset by reductions elsewhere. The debt ceiling authorizes spending on new entitlement programs. The debt ceiling permits borrowing for expenditures that have already been authorized by Congress and the president. The debt ceiling is the total amount borrowed from investors to finance the government's deficit spending.

Back

The debt ceiling permits borrowing for expenditures that have already been authorized by Congress and the president.

Front

The tax code is indexed to compensate for _______.

Back

inflation

Front

Which of the following is the single largest source of federal revenue? Medicare payroll taxes, individual income tax, corporate income tax, borrowing

Back

individual income tax

Front

Which of the following is the single largest federal expenditure? national defense, Social Security, interest, Medicare

Back

Social Security

Front

An effective tax is one that exhibits one or more of the following characteristics: equity, simplicity, efficiency.

Back

all of the above

Front

"Those who benefit from government goods and services should pay in proportion to the amount of benefits they receive." So states the ______.

Back

benefit principle

Front

The terms proportional, progressive, and regressive refer to ______.

Back

types of taxes

Front

In discussing taxes, which is the opposite of regressive?

Back

progressive