Unit 12 Review

What effect did the 16th Amendment have on the Federal Government?

• Allowed the federal government to fund state programs

• Gave the federal government a major source of revenue

• Authorized the federal government to implement social welfare programs

• Made free education accessible to the entire population

Which term describes the country's financial situation for the year in the following scenario?

The country starts the year with $7 trillion in debt
Throughout the year, it collects $2 trillion in revenue

Throughout the year it spends $3 trillion

• Surplus of $1 Trillion

• Deficit of $1 Trillion

• Surplus of $8 Trillion

• Deficit of $8 Trillion

A state taxes its residents at different rates using income tax brackets, with higher incomes taxed at higher rates. How is this tax categorized?

• Proportional

• Regressive

• Progressive

• Flat

Due to health concerns, a state levies a tax of 10 cents on every pound of candy. What type of tax is this?

• Excise Tax

• Corporate Tax

• Income Tax

• Sales TAx

Which are examples of discretionary spending?

• Interest on debt

• entitlements

• defence

• public education

Which is an example of a social welfare service?

• Local library allows state residents to borrow books

• State program helps people with low income pay for housing

• Federal government creates jobs through the construction of a new highway

• School district uses school buses to provide free transportation to school

Consider the differences between mandatory and discretionary spending. Which of the following statements are correct?

• Mandatory spending levels may be adjusted from year to year

• Discretionary spending levels may be adjusted from year to year

• Mandatory spending levels are set by prior legislation

• Discretionary spending levels are set by prior legislation

The scenario below illustrates what concept?

Scenario

A new stadium opens in a city. The stadium creates jobs, and it attracts visitors who spend money at nearby hotels and restaurants. Stadium employees and business owners have more money, so they increase their spending at other nearby businesses. These businesses use their additional income to hire more workers.

• Supply and demand

• market economy

• circular flow of money

• inflation

Which of the following actions illustrate free market activity?

• Byer purchases a smartphone secondhand because it is cheaper than a new

• Manufacture that frequently sells out of an item increases the item's cost

• House owner pays a garbage collection fee to a city four times a year

• Restaurant requires employees to wash hands due to health regulations

Which of the following are examples of the government redistributing wealth?

• Funding the Supplemental Nutrition Assistance Program (SNAP)

• Suing a tech company for practices that prevent other businesses from competing

• using revenue from postage sales to fund the US Postal Service

• Providing a subsidy to a business for opening a store in a specific city