Fiscal Policy: Taxes Assessment Questions With 100% Verified Answers.
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Course
TAX.
Institution
TAX.
Which best explains how contractionary policies can hamper economic growth?
a. They increase consumer demand.
b. They can increase inflation.
c. They reduce taxes which raises deficits.
d. They reduce disposable income. - correct answer d. They reduce disp...
Which best explains how contractionary policies can hamper economic growth?
a. They increase consumer demand.
b. They can increase inflation.
c. They reduce taxes which raises deficits.
d. They reduce disposable income. - correct answer d. They reduce disposable
income.
If expansionary taxation policies encourage growth, are they always appropriate to implement?
a. No, government services could encourage growth but other practices could be more effective based
on the economic situation.
b. Yes, the private sector can easily and affordably replace all services and facilities cut by the
government.
c. No, the government is capable of providing many but not all services individuals and businesses need.
d. Yes, the government will still ensure that individuals and businesses continue to receive all necessary
services. - correct answer a. No, government services could encourage growth but
other practices could be more effective based on the economic situation.
The chart shows how two people with different incomes are taxed.
According to the chart, the citizens are being taxed____
a. proportionally
, b. progressively
c. regressively. - correct answer a. proportionally
Which programs or projects are most likely funded by taxes paid by the citizens of the United States?
Select three options.
a. constructing a highway
b. collecting garbage
c. developing a vacation resort
d. building of private homes
e. maintaining state parks - correct answer a. constructing a highway
b. collecting garbage
e. maintaining state parks
Which of these best describes income tax?
a. regressive tax
b. indirect tax
c. direct tax
d. proportional tax - correct answer c. direct tax
How is an excise tax different from a sales tax?
a. An excise tax is not deductible.
b. An excise tax applies to specific products.
c. An excise tax applies only to imported goods.
d. An excise tax is an indirect tax. - correct answer b. An excise tax applies to
specific products.
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