Govt, Tax and FED

What portion of the federal budget accounts for almost 50% of federal government spending?

• Interest payment on the debt.

• Entitlement programs, like social security

• Spending on parks and libraries

• Spending on infrastructure like roads.

Which tax has all people paying the same percentage of their income to tax?

• Sin tax

• Progressive tax

• Regressive tax

• Proportional tax

Which tax has low income people paying a greater percentage of their income to tax?

• Ability-to-pay tax

• Regressive tax

• Proportional tax

• Progressive tax

Which tax has high income people paying a greater percentage of their income to tax?

• Progressive tax

• Regressive tax

• Benefits-received tax

• Proportional tax

Which is a good provided by the government because it is deemed good for society and culture?

• Commodity good

• Public good

• Merit good

• Syntax good

Which of the following is not a problem with the nation having a large national debt?

• Interest payments on the debt has grown significantly the past years.

• Having an aging population is straining spending on social security.

• The debt is shrinking with current government policies.

• With overspending there is less money available to help the overall economy.

Which of the following is not a way in which the federal government regulates the economy?

• Using anti-trust laws to break-up monopolies.

• Protect citizens health from factory pollution.

• Protect consumers from bank and business fraud.

• Government practicing lassie-faire policies.

Why do banks loan out money to people?

• To put the bank in debt.

• To control the spending habits of people.

• To control the expansion of business.

• To make a profit for the bank.

What is the main function of the Federal Reserve?

• Control the national debt.

• Collect taxes.

• Control the money supply.

• Control government spending.

Which of the following would increase the money supply?

• increase taxes charged to consumers.

• increase the interest rate charged to borrow money.

• increase the Fed Fund Rate.

• increase the amount banks can loan out.