Chapter 3.3 Review Lesson

Chapter 3.3 Review Lesson

Multiple Choice

What is the primary purpose of taxes?

• paying for roads, buses, and cars

• paying for governmental operations, facilities and services

• paying for social security and medicare

Multiple Choice

Federal, state, and local governments generate revenue by taxing ______ and __________.

• individuals; businesses

• individuals; the government

• poor people; rich people

Multiple Choice

Almost half of our Federal Tax Revenue comes from which type of tax ?

• Sales tax

• Customs duties

• Individual income tax

Multiple Choice

What is it called when the federal government spends more money than it collects?

• deficit spending

• mandatory spending

• discretionary spending

• taxable spending

Multiple Choice

The largest government entitlement program currently is ______.

• Social security

• Medicare

• Education

• Deficit spending

Multiple Choice

What federal program pays for certain health-care expenses for older citizens and others with disabilities?

• Social Security

• Medicare

• Medicaid

• VITA Programs

Multiple Choice

A federal expense item that can be adjusted according to needs and revenue is a(n) ___.

• Direct tax

• Indirect tax

• Mandatory expenditure

• Discretionary expenditure

Multiple Choice

A tax levied by federal and state governments on the sale and transfer of items like air travel, telephone services, gasoline, is referred to as a(n) _________.

• Wealth tax

• Property tax

• Excise tax

• Sales tax

Multiple Choice

Which type of tax has the effect of imposing a higher tax rate on those with lower incomes?

• progressive

• regressive

• direct

• indirect

Multiple Choice

At what age do workers become eligible for full retirement benefits from Social Security?

• 55

• 59 1/2

• 65

• 67

Multiple Choice

Which of the following is not a benefit category provided by Social Security?

• disability benefits

• divorced people’s benefits

• survivor’s benefits

• low-income benefits