Question 1

Compared to state and local spending,federal spending is

Accepted Answer

A)  twice as large.
B)  about the same.
C)  half as large.
D)  one-quarter as large.E) A) and B)
F) A) and D)

Question 2

About _____ percent of all Americans pay more in social security tax than in personal income tax.

Accepted Answer

The answer of About _____ percent of all Americans pay...

Question 3

During the last half of 2008 and the first half of 2009,the congress passed and the President signed two bills totaling about _______________ in an attempt to avert the Great Recession.

Accepted Answer

A)  about $700 billion
B)  about $800 billion
C)  nearly $1.5 trillion
D)  more than $2.0 trillionE) B) and D)
F) A) and B)

Question 4

Statement I: The most important source of state tax revenue is the property tax while the most important source of local tax revenue is the sales tax.
Statement II: As a share of federal spending,Social Security and Medicare will continue to grow.

Accepted Answer

A)  Statement I is true and Statement II is false.
B)  Statement II is true and Statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) A) and B)
F) A) and C)

Question 5

Statement I: Compared to citizens of other leading industrial countries,Americans are overtaxed.
Statement II: We could make the payroll tax less regressive by raising the wage-base limitation to $200,000.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) C) and D)
F) A) and C)

Question 6

The tax on cigarettes is

Accepted Answer

A)  regressive and indirect.
B)  regressive and direct.
C)  progressive and indirect.
D)  progressive and direct.E) B) and D)
F) All of the above

Question 7

In modern free enterprise economies,which of the following is not an economic role of government?

Accepted Answer

A)  Stabilization of national income,employment,and the price level
B)  Promotion and maintenance of competitive markets
C)  Altering the allocation of resources to provide for public demands efficiently
D)  Providing a reasonably certain legal,social,and business environment for stable economic growth
E)  Planning the production and distribution of most economic goodsF) A) and B)
G) D) and E)

Question 8

Ralph earns $40,000 per year.According to the income tax schedule,he must pay $4,000 in income taxes this year.If he had earned $50,000 his tax liability would have been $6,000.What marginal tax rate does Ralph face?

Accepted Answer

A)  10 percent
B)  12 percent
C)  20 percent
D)  66 percentE) A) and B)
F) C) and D)

Question 9

Which statement is true?

Accepted Answer

A)  The Kemp-Roth Tax Cut of 1981 and the Tax Reform Act of 1986 both lowered federal personal income tax receipts.
B)  The Kemp-Roth Tax Cut of 1981 and the Tax Reform Act of 1986 raised federal personal income tax receipts.
C)  The Kemp-Roth Tax Cut of 1981 raised federal personal income tax receipts while the Tax Reform Act of 1986 lowered them.
D)  The Kemp-Roth Tax Cut of 1981 lowered federal personal income tax receipts while the Tax Reform Act of 1986 raised them.E) A) and B)
F) A) and C)

Question 10

The sales tax is the most important source of _____ government revenue.

Accepted Answer

A)  federal
B)  state
C)  localD) A) and C)
E) A) and B)

Question 11

Individuals with taxable incomes of between $0 and $8,350 are in the _____ percent tax bracket.

Accepted Answer

The answer of Individuals with taxable incomes of between $0...

Question 12

Well over half of all state and local government expenditures goes towards (1)______; (2)______;and (3)____.

Accepted Answer

education,...

Question 13

-If your taxable income is $30,000,how much tax would you owe?

Accepted Answer

A)  $500
B)  $1,000
C)  $1500
D)  $2,000E) A) and D)
F) A) and C)

Question 14

Groucho earns $5 million and pays $2 million in taxes;Harpo earns $300,000 and pays $80,000 in taxes;Chico earns $25,000 and pays $1,000 in taxes.The tax they pay would be considered

Accepted Answer

A)  progressive.
B)  proportional.
C)  regressive.D) A) and B)
E) A) and C)

Question 15

Which statement is true?

Accepted Answer

A)  State and local governments are expected to provide more and more services while their tax bases are limited.
B)  State and local governments are expected to provide less and less services while their tax bases are relatively unlimited.
C)  Public education has traditionally been the role of the federal government.
D)  None of these statements is true.E) None of the above
F) All of the above

Question 16

Which is the most accurate statement?

Accepted Answer

A)  The federal government gets most of its tax receipts from the corporate income tax.
B)  Nearly one third of all federal expenditures go toward paying interest on the national debt.
C)  The largest two federal spending categories are defense and Social Security.
D)  About 3 percent of federal government spending is on defense.E) A) and D)
F) B) and C)

Question 17

Which of the following would not be a government transfer expenditure?

Accepted Answer

A)  Contribution of employers to support the Social Security program
B)  Social security payments to the aged
C)  Unemployment compensation benefits
D)  Payments to the widows of war veteransE) None of the above
F) A) and C)

Question 18

With respect to local finance,it is correct to say that

Accepted Answer

A)  Sales and excise taxes are the major source of revenue and highway construction and maintenance the major type of expenditure.
B)  Property taxes are the basic source of revenue and education the major type of expenditure.
C)  The corporate income tax is the major source of revenue and natural resource development the major type of expenditure.
D)  Estate and gift taxes are the major source of revenue and most expenditures are for hospitals and health services.E) C) and D)
F) B) and D)

Question 19

Interest payments on the national debt are projected to be about _____% by 2046.

Accepted Answer

The answer of Interest payments on the national debt are...

Question 20

Which of the following statements does not apply to the U.S.tax structure?

Accepted Answer

A)  The individual income tax system is progressive.
B)  General sales taxes are regressive.
C)  Property taxes are an important source of revenue for the federal government.
D)  The major sources of revenue for the federal government differ from the major sources of revenue for state and local governments.E) All of the above
F) C) and D)

Exam 7: The Government Sector

About _____ percent of all Americans pay more in social security tax than in personal income tax.

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The tax on cigarettes is

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With respect to local finance,it is correct to say that

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Which statement is true?

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Individuals with taxable incomes of between $0 and $8,350 are in the _____ percent tax bracket.

Correct AnswerverifiedShow Answer

During the last half of 2008 and the first half of 2009,the congress passed and the President signed two bills totaling about _______________ in an attempt to avert the Great Recession.

Correct AnswerverifiedShow Answer

Statement I: Compared to citizens of other leading industrial countries,Americans are overtaxed. Statement II: We could make the payroll tax less regressive by raising the wage-base limitation to $200,000.

Correct AnswerverifiedShow Answer

Well over half of all state and local government expenditures goes towards (1)______; (2)______;and (3)____.

Correct Answerverifiededucation,...View AnswerShow Answer

Interest payments on the national debt are projected to be about _____% by 2046.

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Compared to state and local spending,federal spending is

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Which of the following would not be a government transfer expenditure?

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In modern free enterprise economies,which of the following is not an economic role of government?

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Which statement is true?

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Groucho earns $5 million and pays $2 million in taxes;Harpo earns $300,000 and pays $80,000 in taxes;Chico earns $25,000 and pays $1,000 in taxes.The tax they pay would be considered

Correct AnswerverifiedShow Answer

Which of the following statements does not apply to the U.S.tax structure?

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Ralph earns $40,000 per year.According to the income tax schedule,he must pay $4,000 in income taxes this year.If he had earned $50,000 his tax liability would have been $6,000.What marginal tax rate does Ralph face?

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The sales tax is the most important source of _____ government revenue.

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-If your taxable income is $30,000,how much tax would you owe?

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Statement I: The most important source of state tax revenue is the property tax while the most important source of local tax revenue is the sales tax. Statement II: As a share of federal spending,Social Security and Medicare will continue to grow.

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Which is the most accurate statement?

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Well over half of all state and local government expenditures goes towards (1); (2);and (3).

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education,...
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