Economic System Quiz

In a free enterprise system, how does the government collect money from citizens and businesses?

• Through donations

• By selling goods

• In the form of taxes

• By borrowing from other countries

What are the incoming funds to the government called?

• Profit

• Revenue

• Savings

• Investment

According to what does the government spend the revenues received?

• Priorities set by the President

• Priorities set by Congress

• Priorities set by the Supreme Court

• Priorities set by the States

Which of the following is a type of tax?

• Progressive tax

• Indirect tax

• Sales tax

• Value-added tax

Which type of tax increases as the taxable amount increases?

• Progressive tax

• Regressive tax

• Proportional tax

• Flat tax

Which type of tax decreases as the taxable amount increases?

• Regressive tax

• Progressive tax

• Proportional tax

• Indirect tax

Which type of tax remains the same percentage regardless of the taxable amount?

• Proportional tax

• Progressive tax

• Regressive tax

• Indirect tax

What is the characteristic of progressive taxes?

• They take a smaller share of income as the amount of income grows.

• They take a larger share of income as the amount of income grows.

• They take a fixed share of income regardless of the amount of income.

• They do not change with the amount of income.

Which type of tax is mentioned as being progressive in the provided material?

• State sales tax

• Property tax

• Federal income tax

• Excise tax

What is a characteristic of regressive taxes?

• They take a larger share of income as the amount of income grows.

• They take a smaller share of income as the amount of income grows.

• They take the same share of income regardless of the amount of income.

• They are only applied to luxury goods.