UNIT 4 ECONOMICS TEST: PUBLIC POLICY & THE ECONOMY

Which of the following fits the classification of an excise tax?

• An additional tax on alcohol.
• An additional tax on phone bills
• An additional tax on tires
• All of the these

Which of the following is discretionary federal government expenditure

• National Defense
• Income Tax
• Social Security
• Income Assistance

Which of the following items would be mandatory spending in the Federal budget?

• National Parks
• Medicare
• National defense
• Corporate Subsidies

True or false, unemployment can be solved by the government through the use of expansionary fiscal policy

• True

• False

Where in the US Constitution is the authority given for the United States Government to tax its citizens?

• Article II
• Article III
• Article I
• Article IV

True or false, to battle inflation Congress should use Expansionary Fiscal Policy?

• True

• False

The tools of fiscal policy is the government’s use of

• Buying and selling bonds
• buying goods and saving money
• taxing and spending to stabalize the economy
• taxing exports

The US federal debt is made up of

• Stocks and bonds
• money loaned to foreign countries
• many past years deficit spending
• revenues exceeding expenditures

The national personal income tax is a ______________tax.

• Proportional
• Regressive
• Progressive
• Benefits Recieved

What is the number one way that the federal government receives its revenue?

• Bonds sales to corporations
• Business subsidies
• Taxation
• Selling Stocks