Unit 7 Economics Review

What is the primary source of revenue for local governments?

• Property tax

• Sales tax

• Income tax

• Excise duty

Which type of tax is primarily used to fund public schools and emergency services at the local level?

• Property tax

• Sales tax

• Income tax

• Excise tax

What type of tax is collected by both the federal and state governments to fund social programs like Social Security and Medicare?

• Payroll tax

• Sales tax

• Property tax

• Excise tax

How does the federal government primarily raise revenue?

• Income tax

• Property tax

• Sales tax

• Tariffs

What type of tax is applied to specific goods like gasoline, alcohol, and tobacco?

• Excise tax

• Income tax

• Property tax

• Sales tax

Which tax is typically only collected at the national level in the United States?

• Tariff

• Property tax

• Sales tax

• Income tax

Why is sales tax considered a regressive tax?

• It takes a larger percentage of income from lower-income individuals

• It only applies to luxury goods

• It is paid only by businesses

• It increases as income increases

What type of tax is collected by most state governments and applied as a percentage of retail purchases?

• Sales tax

• Income tax

• Property tax

• Excise tax

Which is the best example of a progressive tax?

• Income tax

• Sales tax

• Excise tax

• Property tax

Why are taxes economically important at all levels of government?

• They provide revenue for public services and infrastructure

• They increase the cost of living for citizens

• They discourage people from working

• They are used to control population growth