What do taxes collected under the Federal Insurance Contribution Act (FICA) fund?

• Social Security and Medicaid

• Social Security and Medicare

• Medicare and Medicaid

• Medicaid and Supplemental Security Income

Social Security taxes also pay for ______.

• benefits to federal workers and military personnel

• benefits to those who are unemployed

• transportation and training expenses for low-income people

• benefits to older citizens, surviving family members of wage earners, and people with certain disabilities

What is an entitlement?

• a social welfare program providing benefits to people who meet certain eligibility

  requirements

• a social welfare program paying bills for government spending such as supplies and

  utilities

• a social welfare program spending funds over which legislators have direct control

• a social welfare program providing payments that the government receives for certain

  services

All of the following are constitutional limits on the power to tax except that

• tax money must not go to individual interests.

• federal taxes must be the same in every state.

• imports must not be taxed.

• exports must not be taxed.

Your department store receipt says that you paid a 5% sales tax on sports equipment. This sales tax is an

example of

• proportional tax

• progressive tax

• regressive tax

• income tax

All but which of the following may be claimed as a tax deduction?

• interest on a home mortgage

• donations to charity

• some medical expenses

• money spent on household expenses

Which is an example of discretionary spending?

• Social Security

• Medicare

• Medicaid

• education

The federal government spends the largest amount of its budget on Social Security, which is an example of

• federal aid to state and local governments

• discretionary spending

• mandatory spending

• defense spending

Which of the following is an example of state spending?

• the state police who stopped to assist you when you had a flat tire

• the state campground where your family vacations

• state quality inspection

• All of the above

The federal budget is put together

• every other year.

• by Congress and the White House.

• to report to Congress on the preceding years expenditures

• in order to reimburse state governments for costs of federally funded programs.