Government Income - Unit 12

Multiple Choice

Why is it important for governments to have different sources of income?

• To ensure financial stability and fund public services

• To compete with private businesses

• To increase government power over citizens

• To reduce the need for taxes

Match

Match the example to the type of government revenue.

• The government charges a tax of at least 5 percent on the import of brown sugar.

• The government lets farmers rent space for agriculture for a set price per acre.

• The government sets aside some of the timber it produces so small businesses can purchase it.

tariff

lease of land

sale of resources

• tariff

• lease of land

• sale of resources

Multiple Select

Which of the following are sources of revenue for both the federal government and state governments? Select all that apply (2 correct answers).

• income taxes

• sales taxes

• lease of land

• tariffs

Multiple Select

How are bonds different from taxes? Select all that apply (3 correct answers).

• The government must pay back money from bonds, but it does not need to repay taxes.

• People buy bonds by their own choice, but the government requires people to pay taxes.

• Revenue from bonds specifically funds the military, but revenue from taxes can go toward any purpose.

• Only the federal government can sell bonds, but state and local governments can levy taxes.

Multiple Choice

Which category of income changed the most from 2020 to 2022?

• excise taxes

• corporate income taxes

• Social Security and Medicare taxes

• individual income taxes