Question 1

The revenue that the federal government collects from payroll taxes is earmarked to pay for

Accepted Answer

A)  national defense and income security (welfare) programs
B)  national defense and Medicare
C)  Social Security and public schools
D)  Social Security and MedicareE) A) and B)
F) None of the above

Question 2

Taxes on specific goods such as cigarettes,gasoline,and alcoholic beverages are called

Accepted Answer

A)  sales taxes.
B)  excise taxes.
C)  social insurance taxes.
D)  consumption taxes.E) All of the above
F) A) and B)

Question 3

Karole's income rises from $50,000 to $75,000 and her income tax increases from $8,000 to $9,500.Her average tax rate is 6%.

Accepted Answer

A) True 
 B)False

Question 4

If a government sells debt to help meet its expenditures,then the government has a

Accepted Answer

A)  budget surplus.Other things the same,the surplus rises if government expenditures rise.
B)  budget surplus.Other things the same,the surplus rises if government expenditures fall.
C)  budget deficit.Other things the same,the deficit rises if government expenditures rise.
D)  budget deficit.Other things the same the deficit rises if government expenditures fallE) All of the above
F) C) and D)

Question 5

Over the past 100 years,as the U.S.economy's income has grown,

Accepted Answer

A)  tax rates have decreased,while tax revenues have increased.
B)  tax rates have increased,while tax revenues have decreased.
C)  both tax rates and tax revenues have increased.
D)  both tax rates and tax revenues have decreased.E) C) and D)
F) B) and D)

Question 6

A person's tax liability refers to

Accepted Answer

A)  the percentage of income that a person must pay in taxes.
B)  the amount of tax a person owes to the government.
C)  the amount of tax the government is required to refund to each person.
D)  deductions that can be legally subtracted from a person's income each year.E) A) and C)
F) B) and C)

Question 7

In 1950 there were approximately 7 working age people for every elderly person;however,in 2050 there will be

Accepted Answer

A)  only 2.5 working people for every elderly person.
B)  only 5 working age people for every elderly person.
C)  10 working age people for every elderly person.
D)  14 working age people for every elderly person.E) None of the above
F) B) and C)

Question 8

The single largest expenditure by state and local governments is on

Accepted Answer

A)  highways.
B)  police.
C)  public welfare.
D)  education.E) B) and D)
F) A) and D)

Question 9

Which of the following countries has lower total government tax revenue as a percentage of GDP than the United States?

Accepted Answer

A)  Canada
B)  Germany
C)  Sweden
D)  MexicoE) None of the above
F) All of the above

Question 10

The government taxes corporate income on the basis of

Accepted Answer

A)  profit.
B)  the amount the firm receives for the goods or services it sells.
C)  the number of employees.
D)  All of the above are correct.E) B) and C)
F) A) and B)

Question 11

Which of the following statements about state income taxes is correct?

Accepted Answer

A)  Some states do not tax income at all.
B)  If states tax income,they must follow federal guidelines for designing the tax structure.
C)  States are not allowed to have a higher marginal tax rate than the federal marginal tax rate.
D)  All of the above are correct.E) All of the above
F) None of the above

Question 12

State and local governments

Accepted Answer

A)  are funded entirely by their own tax base.
B)  receive the majority of their tax revenues from corporate income taxes.
C)  are generally not responsible for collecting sales taxes.
D)  receive some of their funds from the federal government.E) A) and B)
F) None of the above

Question 13

Suppose that in 2020 the average citizen's federal tax bill is $12,466,and total federal spending is $10,824 per person.In 2020,the federal government will have

Accepted Answer

A)  a budget surplus.
B)  a budget deficit.
C)  horizontal equity.
D)  vertical equity.E) A) and B)
F) None of the above

Question 14

Corporate profits are

Accepted Answer

A)  included in payroll taxes.
B)  exempt from taxes.
C)  taxed twice,once as profit and once as dividends.
D)  taxed to pay for Medicare.E) A) and B)
F) A) and C)

Question 15

The largest budgetary expense for a typical state or local government is

Accepted Answer

A)  education.
B)  Medicare.
C)  highways.
D)  income security.E) A) and B)
F) None of the above

Question 16

State and local governments generate revenue from all of the following sources except

Accepted Answer

A)  sales taxes.
B)  the federal government.
C)  corporate income taxes.
D)  customs duties.E) B) and C)
F) None of the above

Question 17

The amount of income tax owed by a family is

Accepted Answer

A)  not simply proportional to its total income.
B)  unaffected by deductions.
C)  total income minus tax credits.
D)  a constant fraction of income.E) B) and D)
F) C) and D)

Question 18

A payroll tax is a tax on

Accepted Answer

A)  the wages that a firm pays its workers.
B)  earned and unearned income.
C)  specific goods like gasoline and cigarettes.
D)  corporate profits.E) None of the above
F) All of the above

Question 19

Which of the following programs is not included in the federal income security spending?

Accepted Answer

A)  Social Security
B)  welfare
C)  education
D)  unemployment compensationE) All of the above
F) C) and D)

Question 20

In 2011,the U.S.federal government collected approximately how much in total tax receipts?

Accepted Answer

A)  $800 million
B)  $2.5 billion
C)  $5.2 billion
D)  $8.7 billionE) B) and C)
F) All of the above

Exam 24: A-Financial-Overview-Of-The-US

A payroll tax is a tax on

Correct AnswerverifiedShow Answer

Suppose that in 2020 the average citizen's federal tax bill is $12,466,and total federal spending is $10,824 per person.In 2020,the federal government will have

Correct AnswerverifiedShow Answer

State and local governments

Correct AnswerverifiedShow Answer

Which of the following statements about state income taxes is correct?

Correct AnswerverifiedShow Answer

The amount of income tax owed by a family is

Correct AnswerverifiedShow Answer

If a government sells debt to help meet its expenditures,then the government has a

Correct AnswerverifiedShow Answer

In 2011,the U.S.federal government collected approximately how much in total tax receipts?

Correct AnswerverifiedShow Answer

Taxes on specific goods such as cigarettes,gasoline,and alcoholic beverages are called

Correct AnswerverifiedShow Answer

Which of the following countries has lower total government tax revenue as a percentage of GDP than the United States?

Correct AnswerverifiedShow Answer

Over the past 100 years,as the U.S.economy's income has grown,

Correct AnswerverifiedShow Answer

State and local governments generate revenue from all of the following sources except

Correct AnswerverifiedShow Answer

Which of the following programs is not included in the federal income security spending?

Correct AnswerverifiedShow Answer

The single largest expenditure by state and local governments is on

Correct AnswerverifiedShow Answer

Corporate profits are

Correct AnswerverifiedShow Answer

In 1950 there were approximately 7 working age people for every elderly person;however,in 2050 there will be

Correct AnswerverifiedShow Answer

The revenue that the federal government collects from payroll taxes is earmarked to pay for

Correct AnswerverifiedShow Answer

The largest budgetary expense for a typical state or local government is

Correct AnswerverifiedShow Answer

A person's tax liability refers to

Correct AnswerverifiedShow Answer

The government taxes corporate income on the basis of

Correct AnswerverifiedShow Answer

Karole's income rises from $50,000 to $75,000 and her income tax increases from $8,000 to $9,500.Her average tax rate is 6%.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified