Chapter 14: Taxes and Government Spending Review

Front

What is the main purpose of a sin tax?

Back

behavior adjustment

Front

Which of the following best identifies the incidence of the individual income tax? frequency, workers, corporation, wages

Back

workers

Front

An economist might argue that a progressive income tax is effective because it is ________.

Back

equitable

Front

Which of the following is most like a national sales tax? an excise tax, a sin tax, a value-added tax (VAT), none of the above

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? individual income tax, corporate income tax, borrowing, Medicare payroll taxes

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

All of these statements are true of ________: "The most important source of state government revenue." "Primarily transferred from federal government to state governments." "The most important source of local government revenue."

Back

intergovernmental revenue

Front

Elementary schools, police departments, and electrical service are typically paid for by ________.

Back

local government