Fiscal Policy and Taxes

Which amendment to the Constitution allows the federal government to institute an income tax?

• 2nd

• 13th

• 16th

• 19th

Which of the following is NOT a characteristic of a good tax?

• equity

• complexity

• efficiency

• simplicity

The use of government spending & revenue to influence the economy is called

• fiscal policy

• the interest rate effect

• monetary policy

• mandatory spending

The federal income tax is a progressive tax because

• a person with a higher income pays the same as those with lower incomes

• the more dependents you have the more tax credits you receive

• lower income people pay more in taxes

• the higher an income a person has, the higher the percentage that person pays in taxes

What is the largest category of federal spending?

• law enforcement

• national parks and museums

• Social Security

• the environment

The federal budget is put together

• every 2 years

• to report to Congress the prior year's spending

• by Congress and the White House

• by the Supreme Court

A tax on a foreign good brought into the U.S. is called

• a corporate tax

• a tariff

• an excise tax

• a withholding tax

The total current sales tax in Texas is

• 2.5%

• 5%

• 8.25%

• 10.75%

The largest portion of discretionary spending is

• defense

• Medicaid

• scientific research

• interest on the national debt

Assets, such as land and buildings, are called

• communal property

• real property

• indivisible property

• personal property