Unit 5 Review

Which tax system is intended to reduce income inequality?

• Progressive tax

• Regressive tax

• Proportional tax

• Excise tax

What type of tax is a source of revenue for local governments?

• Income Tax

• Sales Tax

• Luxury Tax

• Import Tax

What is the primary goal of a progressive tax system?

• To ensure that everyone pays the same tax rate

• To reduce the tax burden on high-income earners

• To increase the tax rate as the taxpayer's income increases

• To simplify the tax code

The income received by a government from taxes and other non-tax sources.

• Budget

• Revenue

• Federal funds rate

• Government bond

This is the major revenue source for the Federal Government

• Sales Taxes
• Income Taxes
• FICA Taxes
• Property Taxes

Where does the largest share of federal tax revenue come from?

• Corporate taxes

• General sales taxes

• Individual income taxes

• Property taxes

Public schools are largely funded by _________ taxes in the United States.

• Estate

• Sales

• Income

• Property

Which nation has the largest debt?

• South Korea

• Germany

• United States

• China

If the government wants to pay down the national debt, in what area might it reduce spending?

• Medicaid

• military

• Social Security

• Medicare

What is mandatory spending in relation to the US budget?

• Mandatory spending is government spending on programs that are required by law.

• Mandatory spending refers to tax revenue collected from citizens.
• Mandatory spending is optional government spending that can be adjusted annually.
• Mandatory spending includes discretionary programs like education and defense.