Module 4 Review (Economics)

Which of the following is NOT an example of a public good or service?

• Schools

• Roads

• McDonald’s

• Law Enforcement

A tax on items sold by businesses

• Sales Tax

• Property Tax

• Income Tax

• Bonds

A tax taken out of someone’s earnings

• Sales Tax

• Property Tax

• Income Tax

• Bonds

Loans the government takes from citizens

• Sales Tax

• Property Tax

• Income Tax

• Bonds

A tax that landowners are required to pay

• Sales Tax

• Property Tax

• Income Tax

• Bonds

Tax rate decreases as income increases

• Proportional Tax System

• Progressive Tax System

• Regressive Tax System

Tax rate is the same for all income

• Proportional Tax System

• Progressive Tax System

• Regressive Tax System

Tax rate increases as income increases

• Proportional Tax System

• Progressive Tax System

• Regressive Tax System

Which category of the federal budget accounts for the largest amount of government spending?

• Mandatory Spending

• Discretionary Spending

• Paying interest on the national debt

• Emergency Spending

Which of the following is NOT something that would be included in the mandatory spending category of the federal budget?

• Social Security

• Medicare/Medicaid

• Defense

• Retirement plans for veterans and federal employees