US Taxation

Choose the best order of answers to fill-in the blanks.

A government that more efficiently distributes the burden of ______________ is a government that can more expeditiously allocate the _______________ needed for public ______________, social _______________, and ______________.

• Defense, works, resources, taxation, works, welfare.

• Taxation, resources, works, welfare, defense.

• Resources, taxation, works, welfare, defense.

• Welfare, taxation, works, defense.

Answer explanation

What would you assume of a country's taxation system when its infrastructure (roads, buildings, pipes, etc) is crumbling?

• That it is has a high level of individual income taxes.

• That it fails to tax tourists.

• That it struggles in producing enough state revenues.

• That it taxes its engineers and architects too much.

Answer explanation

If progressive income tax exempts needy individuals from paying much or any taxes at all, what could be considered a regressive tax or "taxes of the poor"?

• Corportate taxes

• Sale taxes

• Inheritance taxes

• Direct taxes

Answer explanation

A budget deficit occurs when...

• Expenditures exceed purchases

• Purchases exceed expenditures

• You spend more than what you earn

• What you earn is more than what you spend.

Answer explanation

What happened to the attempts to balance the budget in the past—the austerity projects? Why some argue that the federal budget is not the same as a home budget? And what does Keynes have to do with it?

Answer explanation