Public Goods & Services & Taxes

What statement best explains why the government provides goods and services to its citizens?

• To provide benefits to small groups of people in certain areas of the country.

• To provide goods and services that would not be available if individuals had to provide them.

• To compete with businesses in the private sector.

• To make a large profit by providing certain goods and services to it's citizens.

What do Interstate highways and national defense have in common?

• Offer protection to citizens

• Earn money for the government

• Owned by private companies

• Provide benefits to many people

What do Interstate highways and national defense have in common?

• Corporations that earn money for the government

• Corporations that earn money for the government

• Services provided by individual citizens

• Government services that provide protection to citizens

The government pays for public goods and services through —

• donations from wealthy politicians

• donations from foreign nations

• revenue from sales and income taxes

• revenue from the lottery

The United States government provides the following services EXCEPT —

• interstate highways

• satellite radio

• postal service

• national defense

Taxes a resident pays to the government provide for which services?

• Public schools

• Cable TV

• Police

• Pizza Delivery

• Roads

Which statement explains the principle of a progressive federal income tax?

• People who earn higher incomes are in a position to contribute more to the tax base.

• Taxes should be based on what type of good or service an individual purchases.

• The federal government taxes the wealthy less because they contribute more to society.

• The federal government makes progress by taxing the American people.

n. 1. a tax system where the same percentage of tax is deducted from a person regardless of their income amount. Which tax term is being defined?

• Proportional taxation

• Revenue taxation

• Regressive taxation

• Progressive taxation

Under a regressive tax policy, which income-earner would be taxed at the highest rate?

• A police officer earning $40,000 per year

• A registered nurse earning $65,000 per year

• A computer programmer earning $100,000 per year

• A business executive earning $800,000 per year

A sales tax is regressive because

• the less you buy the less you are taxed

• the impact of a flat rate would be worse for a poor consumer than wealthy one

• the more you buy the more you are taxed

• the more money you make the more you are taxed