Economics Chapter 14 Sections 1 and 2 Quiz

Why do governments impose taxes?

• To limit the income of the people.

• To provide public goods and services

• To keep the country out of debt

• To keep track of citizens salaries

A tax for which the percentage of income paid in taxes increases as income increases.

• Regressive

• Proportional

• Excise

• Progressive

Taxes that fund Social Security and Medicare

• FICA

• Tariff

• Gift

• Estate

A tax on the dollar value of a good or service being sold

• Proportional Tax

• Revenue

• Sales Tax

• Medicare

A tax on imported goods

• Tariff

• Estate Tax

• Gift Tax

• Regressive Tax

What is the main purpose of federal taxes on tobacco and alcohol products?

• To raise money for the government

• To make it expensive to import these products

• To make it harder for companies to sell these products

• To discourage the use of these products

A tax for which the percentage of income paid in taxes remains the same for all income levels.

• Regressive

• Progressive

• Proportional

• Property

Income received by a government from taxes and nontax sources

• Gross Domestic product

• Incidence of a tax

• Revenue

• FICA

What does the "equity" of a tax mean?

• The tax is simple to collect

• The tax is fairly assessed

• The tax is paid equally by everyone

• The tax is paid only by those who will use the service it provides

Form used to file income taxes

• Tax Return

• Deductions

• Withholding

• Social security