Government and the Economy

The amount of money you make before taxes and deductions....

• Gross Pay

• Net Pay

When is the deadline for your income tax return?

• January 1st

• January 31st

• April 15th

• April 1st

Which of the following is an example of a service provided by the federal government?

• A national chain of fast-food restaurants

• An interstate highway

• Cable and satellite television

• The Internet

Which of these people depends on tax money to pay their salary?

• A bank teller

• The president of Apple Computers

• A professional athlete

• The mayor of your town

Under a progressive income tax, who would pay the largest proportion of their income in taxes?

• A schoolteacher

• The owner of a small business

• A millionaire

• A student on financial aid

What do sales tax and income tax have in common?

• They both apply to things you buy

• You pay both of them only once a year

• They're both calculated as percentages

• They're both progressive taxes

What might happen if the government abolished the social security tax?

• People with jobs could afford to retire

• The government would not be able to pay its employees

• New roads and bridges could not be built

• Retired people would lose a valuable source of income

If sales tax is 10 percent, and a new pair of sneakers costs $70, how much do you actually have to pay?

• $77

• $71

• $80

• $100

What is the federal budget?

• A plan for how the federal government spends taxpayers' money

• A scheme by the federal government to cheat us out of our hard earned money

• A guess by the federal government as to what they might want to spend money on

Who plays a role in developing the federal budget?

• The President and Congress

• Taxpayers and the President

• Taxpayers and Congress

• Only the President

• Only the Congress