Citizenship Review Quiz 2 ($)

How does a government decide what to spend money on?

• Budget

• Supreme Court decision

• Executive Order

• Speech

Which of the following makes up the largest share of government revenues?

• corporate tax

• estate taxes

• income tax

• social insurance tax

Taxes paid by both employees and employers to fund such programs as Social Security, Medicare, and unemployment insurance are known as...

• corporate taxes

• income taxes

• social insurance taxes

Another term for social insurance taxes is...

• estate tax

• excise tax

• payroll tax

If the US's revenue is $3 trillion but its outlay is $4 trillion then there is $1 trillion added to the...

• deficit

• debt

Income tax is-

• Money your employer pays to you
• Money you earn and put into the bank
• tax paid on the money you earn each year
• FREE MONEY!!

Billy gets charged tax every time he buys a new pair of shoes or a Iced Coffee at Dunkin Donuts. What kind of tax is this?

• Income

• Property

• Payroll

• Sales

A progressive tax is...

• A tax that is the same percentage of income regardless of income levels
• A tax that increases in percent of income as income increases
• A tax that increases percentage as income decreases
• A tax on a goods and services that are bought

A budget deficit occurs when...

• The government brings in more revenue than it spends for a given year
• The government spends more money than it brings in for a fiscal year

What means the government has spent more than it has raised

• revenue
• surplus
• deficit
• appropriations