Question 1

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. 
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.

Question 2

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 Medicare 
A) national defense and income security (welfare)programs 
B) national defense and Medicare 
C) Social Security and public schools 
D) Social Security and Medicare

Question 3

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 billion 
A) $800 million 
B) $2.5 billion 
C) $5.2 billion 
D) $8.7 billion

Question 4

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 5

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. 
A) a budget surplus. 
B) a budget deficit. 
C) horizontal equity. 
D) vertical equity.

Question 6

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

Accepted Answer

A) education. 
B) Medicare. 
C) highways. 
D) income security. 
A) education. 
B) Medicare. 
C) highways. 
D) income security.

Question 7

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) Mexico 
A) Canada 
B) Germany 
C) Sweden 
D) Mexico

Question 8

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. 
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.

Question 9

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. 
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.

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. 
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.

Question 11

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 fall 
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 fall

Question 12

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. 
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.

Question 13

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

Question 14

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. 
A) sales taxes. 
B) excise taxes. 
C) social insurance taxes. 
D) consumption taxes.

Question 15

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. 
A) the wages that a firm pays its workers. 
B) earned and unearned income. 
C) specific goods like gasoline and cigarettes. 
D) corporate profits.

Question 16

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. 
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.

Question 17

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. 
A) sales taxes. 
B) the federal government. 
C) corporate income taxes. 
D) customs duties.

Question 18

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. 
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.

Question 19

The single largest expenditure by state and local governments is on

Accepted Answer

A) highways. 
B) police. 
C) public welfare. 
D) education. 
A) highways. 
B) police. 
C) public welfare. 
D) education.

Question 20

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 compensation 
A) Social Security 
B) welfare 
C) education 
D) unemployment compensation

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

State and local governments

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

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

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%.

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

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

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

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

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

The government taxes corporate income on the basis of

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

Corporate profits are

The amount of income tax owed by a family is

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

A payroll tax is a tax on

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

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

A person's tax liability refers to

The single largest expenditure by state and local governments is on

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

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion