The Federal Budget

What are taxes?

• Voluntary donations to the government

• Mandatory financial charges imposed by a government

• Optional fees for public services

• Charitable contributions to public projects

Which levels of government can impose taxes?

• Local, state, and federal

• Only federal

• Only state

• Only local

Who proposes policies and goals that affect taxes?

• Congress

• The President

• The Supreme Court

• The Senate

What is Congress's role in the tax process?

• To propose policies

• To decide on policies

• To enforce tax laws

• To collect taxes

Which of the following is NOT paid for by taxes?

• Roads

• Schools

• Food stamps

• Private businesses

Which of the following is an example of a public good?

• Private School

• Library

• Shopping Mall

• Restaurant

What characteristic defines a public good as non-excludable?

• It is funded by private investors.

• It is impossible to prevent people from using the good.

• It is only available to paying customers.

• It is available only during certain hours.

Public goods are typically provided by which entity?

• Private corporations

• Non-profit organizations

• The government

• Individual citizens

Which of the following is NOT a characteristic of public goods?

• Non-excludable

• Non-rivalrous

• Exclusively for private use

• Provided for by taxes

What is the primary goal of monetary policy?

• To control inflation

• To regulate international trade

• To control a nation's overall money supply and achieve economic growth

• To increase government spending