Tax and Gov. Spending Test

The national government makes the majority of its money from what type of tax? 

• medicare taxes
• property tax
• income tax
• sales tax

Taxes do which of the following?

• redistribute income
• change resource allocation
• change behavior
•  all of these

The state government makes the most money from what type of tax

• sales tax
• property tax
• income tax
• social security tax

The national government spends the most money on what?

• education
• social security
• national defense
• highways

The federal income tax is an example of a

• progressive tax
• proportional tax
• regressive tax

The four criteria for effective taxes are:

• efficiency, simplicity, regressiveness and ability to pay
• equity, simplicity, certainty and efficiency 
• efficiency, simplicity, fairness and progressiveness

Having to pay interest on the national debt is an example of 

• Discretionary Spending
• Mandatory Spending
• Deficit Spending

Local governments make the most money from what type of tax

• income tax
• property tax
• sales tax

What percentage of National spending is spent on Education?

• 50
• 75
• 1
• 20

Mandatory spending is spending about which government planners can make choices.

• True 
• False