Study Review - Unit 5 Test

Front

Why is taxation necessary?

Back

provide money for government programs

Front

What is a progressive tax?

Back

a tax that charges more for higher incomes

Front

What is the purpose of payroll taxes?

Back

pay for specific social programs

Front

What is the purpose of income tax brackets?

Back

enable the progressive taxation of income

Front

Which is the effect of a tariff charged on an imported good?

Back

The price paid by consumers is increased.

Front

Taxes differ from tariffs because taxes are what?

Back

collected on domestic economic activity

Front

Taxes are fundamental to strong economies. They allow governments to provide society with public goods and services. Taxes are the price everyone pays for living in a civilized society. True or False?

Back

True

Front

Who has to approve the budget of the U.S. government?

Back

Congress

Front

Which is the first step in creating a federal budget?

Back

The Office of Management and Budget (OMB) prepares a budget proposal.

Front

Which of the following is NOT a way the government can cover a budget deficit?
borrowing from banks,
issuing bonds,
selling stocks,
have a fundraiser

Back

selling stocks