Module 9 Review

Which of the following statements accurately describes the national debt?

• The debt has generally been coming down since the end of World War II.

• The national debt is the amount of money that the government has to borrow each year.

• The national debt is less than the yearly national budget of the United States.

• The national debt has been growing since 1969.

In which of the following categories does the United States government usually spend the most on?

• Social Security

• Education

• Interest on the national debt

• Safety net programs

Which of the following do you think would not part of the federal education budget?

• providing grants for low-income students to attend college

• helping districts set performance-based raises for teachers and principals

• providing special education funding

• paying coaches in schools

What is the primary method all three levels of government use to raise revenue?

• tariffs

• selling on commodities

• taxes

• volunteerism

Which of the following taxes apply to the ability-to-pay principle?

• Lisa paid 5 cents in tax for a $1 candy bar.

• Jamie paid $2 in taxes for $40 worth of gasoline.

• Heather paid $1 in taxes for a $5 pack of cigarettes.

• Shawn received a raise at work but had to pay a higher tax rate, which cut into his new raise.

To which of the following government programs would a single, cross-country truck driver with no children most likely want his taxes to go?

• a new gym for the local school

• a new neighborhood park

• fixes and improvement to interstate highways

• NASA establishing a colony on Mars

Which of the following is not an example of paying a government fee?

• A couple pays $30 to receive their marriage license.

• A young adult pays a $22 late fee to a DVD rental kiosk for failing to return a DVD.

• A middle-aged man from New York pays $240 to hunt in Wyoming.

• A young mother pays $15 to get her driver's license renewed.

Which of the following is an example of paying a government fine?

• A young adult has to pay $100 to their bank after they bounce two checks.

• An elderly gentleman buys a fishing license.

• A new college graduate spends $300 a month paying off their student loan.

• A middle-aged man has to pay $75 for texting while driving.

Which of the following statements accurately describes a government bond?

• The government will pay interest on the bond until it can repay the entire amount at a time of its choosing.

• Only the federal government is allowed to issue bonds.

• Bonds cannot be bought by private citizens.

• Bonds are considered a safe way to invest money.

What does it mean to have a progressive tax?

• Everyone, except for those with the lowest incomes, pays the same rate of tax.

• The higher a person's salary, the higher the percentage that a person will pay in taxes.

• The lower a person's salary, the higher the percentage that a person will pay in taxes.

• A person's tax rate will change every year.