Government Revenue and Taxation Quiz

Which of these sources of government revenue best illustrates the benefits-received approach to tax equity?

• A corporation pays taxes on its income.

• A driver deposits coins in a parking meter.

• A percentage of a large inheritance is paid to the government.

• Funds for Medicare are withheld from a paycheck.

Which historical period brought the greatest increase in government involvement in the economy?

• Reconstruction (after Civil War)

• Gilded Age (late 1800s)

• Progressive Era (early 1900s)

• Great Depression (1930s)

How do state and local governments typically generate revenue to pay for education, law enforcement, and fire protection services?

• payroll and insurance taxes

• corporate and business taxes

• property and sales taxes

• lotteries and municipal bonds

Which of these taxes is the leading source of revenue for the federal government?

• corporate income taxes

• individual income taxes

• inheritance taxes

• payroll taxes

How do economists think private ownership most affects property maintenance?

• It is helpful because owners have to pay taxes on the property, which the government uses for maintenance.

• It is harmful because owners must pay property tax and usually don't have enough money for upkeep.

• It is harmful because owners save money by letting property get run down.

• It is helpful because owners have an incentive to care for the property.

The U.S. Patent and Trademark Office was established to protect

• corporate property.

• inherited property.

• intellectual property.

• public use property.

Most sales taxes are regressive because

• taxable purchases are capped at $50,000 a year.

• wealthier people pay less tax on a purchase than poorer people would pay on the same item.

• most people cannot afford to buy such luxury goods as yachts, furs, and diamonds.

• poorer taxpayers spend a larger proportion of their income on taxable goods and services than do wealthier taxpayers.

Establishment of which regulatory agency is associated with a 60 percent drop in workplace fatalities since 1971?

• Consumer Product Safety Commission

• Environmental Protection Agency

• National Highway Traffic Safety Administration

• Occupational Safety and Health Administration

To calculate the amount of tax due, multiply the tax base by the tax:

• rate

• assessment

• return

• referendum

When a tax becomes a disincentive to work, the resulting reduction in productivity is a form of:

• deadweight loss

• marginal tax rate

• entitlement

• tax incidence