PF - Unit 3

Why does the government need to collect taxes?

• ensure competition and protect consumers

• prevent international trade from costing jobs

• provide investments for domestic industries

• control the money supply and manage economic growth

Which describes a property tax?

• percentage charged on the purchase of non-necessary goods

• percentage charged on the value of a residential house

• tax charged on each pack of cigarettes

• percentage charged on profits from selling stocks

Which describes a regressive tax?

• charges rich people more

• is higher on harmful activities

• puts greater burden on those with lower incomes

• takes money from people when they die

Taxes differ from tariffs because taxes are what?

• used only for subsidies and quotas

• paid only by nonimmigrants

• collected on domestic economic activity

• based on income brackets

Which step occurs last in the creation of the federal budget?

• The president gives a proposed budget to Congress.

• Congress decides on the details of the budget.

• The president signs spending bills into law.

• Congress decides on the overall level of spending and taxation and passes specific spending bills.

Which of these has been a trend in the twentieth century?

• reduced levels of taxations

• the spread of censorship

• growing levels of government spending

• decreased free trade

Which is a public good?

• national defense

• stock portfolio

• college education

• textbooks

Government corporations can be described as which of the following?

• Privately funded

• Social Services Provided

• Independently Run

• Public Good Producers

Which merit good does the U.S. government provide through a payroll tax?

• infastructure

• national defense

• retirement benefits

• consumer protection

What does production limitation involve?

• cartel setting a maximum output for the good that all members sell

• large company charging below its production cost in order to eliminate competition

• group of companies agreeing on a particular price to charge for their products

• government quota restricting the amount of imports from a certain country