Gov - Unit 12 Review

What effect did the 16th Amendment have on the federal government?

• It gave the federal government a major source of revenue (income tax).

• It allowed the federal government to fund state programs.

• It made free education accessible to the whole population.

Match the description to the term.

• Bond

• The government spends more money than it takes in.

• Deficit

• The government takes in more money than it spends.

• Surplus

• The government uses this to borrow money.

A state taxes its residents at different rates using income tax brackets, with higher incomes taxed at higher rates. How is this tax categorized?

• Progressive

• Proportional

• Regressive

Due to health concerns, a state levies a tax of $0.10 on every pound of candy. What type of tax is this?

• Excise Tax

• Income Tax

• Sales Tax

How can the government borrow money from individuals?

• By selling government securities.

• By leasing federal land.

• By levying payroll taxes.

Which are examples of discretionary spending?

• Defense

• Entitlements

• Interest on debt.

If the government was in danger of defaulting on its debt, what might Congress do?

• Raise the debt ceiling.

• Cut mandatory spending.

• Delay its payment of interest.

Which is an example of entitlement spending?

• A state government provides a monthly payment for 3 months for parents who take time off work to care for a new baby.

• A state government uses federal funding to repair a highway after a storm causes major damage.

Which is an example of a social welfare service?

• A state program helps people with low-income pay for housing.

• A school district uses school buses to provide free transportation to school.

• A local library allows state residents to borrow books.

Consider the differences between mandatory and discretionary spending. Which of the following statements is correct?

• Mandatory spending levels are set by prior legislation.

• Discretionary spending levels are set by prior legislation.

• Mandatory spending levels may be adjusted from year to year.