Taxes and Government Policies

Which of the following fiscal policy tools would decrease national debt?

• Increase Spending

• Increase Taxes

• Decreased Taxes

• Increase Money Supply

If the government is concerned about unemployment, which measure would they use?

• Increase Spending

• Increase discount rate

• Increase taxes

• Increase money supply

Which monetary policy measure would be used to slow down the economy

• Increased interest rates

• Increase income tax

• Decrease income tax

• Increase government spending

Which fiscal policy measure would be used to improve an economy from a bad year

• Improve training and education

• Decrease government spending

• Increase money supply

• Increase government spending

Which supply-side policy measure would be used to improve employment

• Increase government spending

• Increased income taxes

• Improved education and training

• Decreased unemployment benefits

What is a government budget?

• A budget is a sum of finances that the government allocates for a specific purpose

• A budget shows the relationship between government revenue and government expenditure

• A government budget is a relationship between export revenue and import expenditure

• A government budget is the amount of money the government owes to its people

Which tax is defined as a tax on profits of firms

• Capital gains tax

• Income tax

• Corporate tax

• Sales tax

Which of the following is not an indirect tax?

• Sales Tax

• Excise Duties

• Income Tax

• Customs Duties

A tax that takes equally from everybody is known as a(n)

• Equal tax

• Proportional Tax

• Progressive Tax

• Regressive Tax

Which of the following is not a principle of taxation

• Equity

• Flexibility

• Certainty

• Divisible