HST 413 Unit 5 Test

The government must force people to pay taxes so that it can do what?

• pursue the goals of equity and security

• make and enforce the laws necessary to make the free-market system work properly

• control the money supply and manage economic growth

• make and enforce the laws necessary to make the free-market system work properly

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

What is the justification for the progressive taxation method?

• idea that taxation should be based on the ability-to-pay principle

• fact that poor people get more benefits from government services

• view that merit goods need to be provided by the government

• need to reduce demand for harmful and destructive activities

A trade agreement that creates favorable trade terms between two nations establishes which of the following?

• Normal Trade Relations

• common immigration policy

• protective tariffs

• a currency zone

Which of the following is true about tariffs?

• They are paid to support national defense only.

• They are paid on international trade only.

• They are paid by immigrants only.

• They are paid on wealth only.

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.

Pork barrel projects are approved because they do what?

• pay for the provision of public goods

• provide funding for antitrust enforcement

• help politicians win support from their constituents

• provide support for the poor and the elderly

The twentieth century has shown a trend toward greater what?

• distribution costs

• government censorship

• educational restrictions

• government spending

Which is a public good?

• college education

• school building

• health care

• road

Government agencies are which of the following?

• monopolies

• independently run

• defense contractors

• part of the public sector