Ch. 15-1 Defining Fiscal Policy

Multiple Choice

Which of the following best explains why governments collect taxes?

• To fund public services and infrastructure

• To increase the wealth of politicians

• To discourage people from working

• To reduce the population

Multiple Choice

Which type of tax takes the same percentage of income from individuals at all income levels?

• Proportional tax

• Progressive tax

• Regressive tax

• Corporate tax

Open Ended

Explain how a regressive tax impacts individuals with different income levels using the example of Ben and Tammy.

Multiple Select

Which of the following taxes are collected by both federal and state governments?

• Individual income taxes

• Corporate income taxes

• Property taxes

• Sales taxes

Fill in the Blank

Social welfare taxes are withheld from a paycheck by the ___ (abbreviation).

Multiple Select

Which of the following items are often exempt from sales tax in some states?

• Food

• Medicine

• Clothing

• Electronics

Open Ended

Compare the combined state and local sales tax rates in the southeastern and northwestern regions of the United States based on the map.

Multiple Choice

Which of the following is an example of an excise tax?

• A tax on tires

• A tax on income

• A tax on property

• A tax on imports

Open Ended

Based on the pie chart and the definitions provided, analyze how significant excise taxes are as a source of federal income compared to other sources. What might be the implications of this for government revenue and policy?