WorksheetsChp 14 - Taxes
Total questions: 20
Worksheet time: 10mins
What is the main purpose of a sin tax?
revenue generation
behavior adjustment
income redistribution
resource allocation
Which statement is most accurate about the debt ceiling?
It requires that new spending proposals or tax cuts must be offset by reductions elsewhere.
It authorizes spending on new entitlement programs.
It allows borrowing for spending that Congress has already authorized.
It's the total amount borrowed from investors to finance the government's deficit spending.
Which of the following is the single largest source of federal revenue?
individual income tax
corporate income tax
borrowing
Medicare payroll taxes
Which of the following is the single largest federal expenditure?
national defense
Social Security
interest
Medicare
Elementary schools, police departments, and electrical service are typically paid for by
the federal government
state governments
local government
natural monopolies
“Those who benefit from government goods and services should pay in proportion to the amount of benefits they receive.” So states the
benefit principle
ability-to-pay rule
incidence of tax
alternative minimum tax
In discussing taxes, which is the opposite of regressive?
progressive
flat
value-added
alternative
Which is the primary source of revenue for the federal government?
borrowing
duties
taxes
fees
Which of the following is an example of federal mandatory spending?
Social Security
national defense
income security
Medicare
States receive most of their intergovernmental revenue funds from
other state governments
local governments
public utilities
the federal government
Which is a major revenue category for state governments?
federal spending
contributions to employment retirement funds
sales tax receipts
hospital fees
What do state governments spend the most on?
local governments
the federal government
welfare
higher education
After intergovernmental revenue, the largest source of revenue for local governments is
state spending
income tax
federal grants
property tax
Which is an example of the use of intergovernmental revenue?
The federal government uses borrowing to fund nationwide health care.
Iowa uses its income tax funds to build several new school buildings.
Nebraska uses funds from the federal government for highway and hospital repairs.
The federal government uses payroll tax revenue to fund Social Security payments.
If the government spends $3,952 billion and receives $3,336 billion in revenue, the government faces a budget __.
deficit
surplus
advantage
that is balanced
As income increases, the percent paid in taxes stays the same.
proportional
progressive
regressive
As income increases, the percent of income paid in taxes goes up.
proportional
progressive
regressive
As income increases, the percent of income paid in taxes goes down
proportional
progressive
regressive
Which of the following are examples of government expenditures? (Choose 3)
Police and fire protection
Sales tax
Property tax
Street repair
Elementary education
A synonym for revenue is
income
debt
spending
tax
