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Worksheets

Role of Government in an Economy

Total questions: 25

Worksheet time: 18mins

Name
Class
Date
1.
Amanda has to pay taxes on her annual salary and investments. Which type of tax is Kimberly paying? 
a)
Sales Tax
b)
Property Tax
c)
Payroll Tac
d)
Income Tax
2.
Jonathan's new clothes cost a total of $572.50 before tax. What type of tax does Jonathan have to pay for his new clothes?
a)
Income Tax
b)
Property Tax
c)
Payroll Tax
d)
Sales Tax
3.

the amount of money collected from a property owner based on the value of a property for the local government as required by law

a)

sales tax

b)

property tax

c)

income tax

d)

payroll tax

4.
what is progressive tax?
a)
nothing important
b)
income tax 
c)
tax that takes larger percentage from people that make more money than other
d)
tax that takes larger percentage from people that make less money than everyone else 
5.

Which tax imposes a higher rate of taxation on individuals with lower income?

a)

progressive tax

b)

regressive tax

c)

proportional tax

6.

Which tax imposes the same percentage rate of taxation on everyone, regardless of income?

a)

progressive tax

b)

regressive tax

c)

proportional tax

7.

What are the mandated payments that individuals and firms make to the government and the most important way the government raises revenue?

a)

wages

b)

taxes

c)

prices

8.

Economic functions of the government are all the following EXCEPT to ___________.

a)

control the price level of public goods

b)

create a stable economic environment

c)

to increase the level of education

d)

distribute income and wealth

9.

Petroleum income tax and stamp duties are two examples of government revenue. Revenue falls under ______.

a)

direct taxes

b)

indirect taxes

c)

non-tax revenue

d)

non-revenue receipts

10.

The government created laws to regulate business.

a)

True

b)

False

11.

What are payments the government gives to some businesses to make up for their losses called?

a)

revenues

b)

tax incentives

c)

patents

d)

subsidies

12.

Money the government takes in

a)

Revenue

b)

Profit

c)

Subsidy

d)

tax incentive

13.

What is the definition of income tax?

a)

based on the value of goods or services at the time of sale

b)

tax on assets given by one living person to another

c)

tax on the production or sale of a specific good or service

d)

based on an individual's income from all sources

14.

What is the definition of Estate Tax?

a)

Money charged for the use of a good or service

b)

tax on goods imported into the United States

c)

tax on property transferred to others on the death of the owner

d)

tax on the production or sale of a specific good or service

15.
The Ruling authority for a community
a)
Government
b)
Citizenship
c)
Rule of Law
d)
Popular sovereignty 
16.
Why do communities need governments?
a)
How else would we get our daily oppression?
b)
to keep spying on us
c)
TO make it possible for people to live together peacefully
d)
So those dang kids will stay off my lawn!
17.

What is the best description of the Government

a)

Group of officials who ensure the law and order in the country

b)

Group of individuals who manage the economy

c)

Group who oversee the welfare of the citizens

d)

Group of officials who exercise authority and control the affairs of the country on behalf of the citizens

18.

Which of the following is NOT a direct tax?

a)

Income Tax

b)

Capital Gains Tax

c)

Corporation Tax

d)

Value Added Tax

19.

A reason for Government's Role in Business is

a)

To increase Taxes

b)

To provide services to benefit all citizens

c)

To crowd out Private Sector investment

d)

Compete with the Private Sector

20.

Zoning involves...

a)

Creating defined areas for business activities and restricting production in other areas

b)

Collecting taxes for pollution of the environment

c)

A way in which Government protect the environment

d)

Identifying certain wildlife areas that should not be disrupted by development such as building of factories and residential areas.

21.

Which of the following aids consumers with redress

a)

The Food and Drug Act

b)

The Standards Act

c)

The Bureau of Standards

d)

The Consumer Affairs Commission

22.

Which of the following organizations investigates injustices suffered by citizens.

a)

The Standards Act

b)

The Ombudsman

c)

Court of Justice

d)

The Fair Trading Commission

23.

All of the following are social services offered by the government EXCEPT

a)

Subsidies

b)

Roads

c)

Health care

d)

Education

24.

All of the following are Government assistance to Business EXCEPT

a)

Subsidies

b)

Low interest loans

c)

Customs duties

d)

Training

25.

What does N.I.S stands for

a)

National Insurance Scheme

b)

National Insurance Services

c)

National Incentive Scheme

d)

None of the Above