Unit 5: The Government Gets Involved

Why is taxation necessary?

• prevent a regressive method of production

• control the money supply and manage economic growth

• enable government planning of the economy

• protect domestic producers from foreign competition

Which describes a property tax?

• percentage charged on the purchase of non-necessary goods

• percentage charged on the value of a residential house

• tax charged on each pack of cigarettes

• percentage charged on profits from selling stocks

Which is an example of a sin tax?

• Medicare

• Social Security

• Sales tax

• Tax on cigarettes

Which describes a regressive tax?

• charges rich people more

• is higher on harmful activities

• puts greater burden on those with lower incomes

• takes money from people when they die

The World Trade Organization was formed in order to accomplish what? 392667

• collect protective tariffs

• promote free trade

• reduce distribution costs

• facilitate currency exchange

Tariffs differ from taxes because tariffs are what?

• collected on imported goods

• charged only on income

• a form of public equity

• spent on government contractors

Which government official is required by law to deliver a budget to the U.S. Congress? 392673

• secretary of state

• the president

• speaker of the house

• IRS director

Which step occurs last in the creation of the federal budget?

• The president gives a proposed budget to Congress.

• Congress decides on the details of the budget.

• The president signs spending bills into law.

• Congress decides on the overall level of spending and taxation and passes specific spending bills.

Which of these has been a trend in the twentieth century?

• reduced levels of taxations

• the spread of censorship

• growing levels of government spending

• decreased free trade

Government corporations can be described as which of the following?

• social service agencies

• private sector companies

• public sector corporations

• anticompetitive monopolies