Question 1

An example of a transfer payment is

Accepted Answer

Transfer payments are government payments to individuals or groups that do not involve production of goods or services in exchange. Old-age pensions are a form of transfer payment as they involve the distribution of government funds to eligible individuals without any goods or services being provided in return. The other choices involve either private payments (dividends to stockholders) or government expenditures (military expenditures and military aid to a foreign country) that are not transfer payments.

Question 2

The federal personal income tax is

Accepted Answer

The federal personal income tax is a direct tax, meaning that it is assessed directly on individuals’ incomes. It is also progressive, meaning that the tax rate increases as income increases.

Question 3

Who said this? "The government is best which governs least".

Accepted Answer

This quote is commonly attributed to Thomas Jefferson, one of the Founding Fathers of the United States, who believed in limited government and individual liberty.

Question 4

After the major income tax decrease for the high income earners in 1981,the federal deficit _______ by 1990.

Accepted Answer

The federal deficit significantly increased after the major income tax decrease for high income earners in 1981, and by 1990, it had essentially tripled. This was a result of reduced revenue from taxes coupled with continued or increased government spending.

Question 5

Who,among the following,said this? "It is generally allowed by all,that men should contribute to the public charge but according to the share and interest they have in the public peace;that is,according to their estates or riches".

Accepted Answer

This quote is from Sir William Petty, an English economist and philosopher who lived from 1623-1687. He believed in the principle of taxation according to one's ability to pay, which he believed was reflected in one's wealth or property.

Question 6

Which one of these people said this? "The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest amount of hissing."

Accepted Answer

This quote is commonly attributed to French finance minister Jean Baptiste Colbert in the 17th century.

Question 7

Which statement is true?

Accepted Answer

The federal government indeed receives the majority of its tax revenue from the federal personal income tax. This is a significant source of revenue for the government, funding various public services and programs. Options A and C are incorrect; the federal government's fiscal year starts on October 1, not January 1, and net interest on the national debt is a significant expense but has not historically been as high as 15 percent of the federal budget.

Question 8

A couple with two dependent children with a taxable income of $12,000 will

Accepted Answer

The answer of A couple with two dependent children with...

Question 9

Statement I: The primary income sources of the rich are dividends,interest,and profit,none of which is subject to the Social Security tax.
Statement II: The payroll tax is the federal government's fastest-growing source of revenue.

Accepted Answer

Statement I is true because dividends, interest, and profit, which are common income sources for the wealthy, are not subject to Social Security tax, which primarily taxes wages and salaries. Statement II is also true as the payroll tax, which funds Social Security and Medicare, has been one of the fastest-growing sources of federal revenue, largely due to increases in the wage base subject to the tax and the growth in employment.

Question 10

Which statement is true?

Accepted Answer

The statement that is true is B. The cigarette tax is an excise tax. The federal personal income tax is a progressive tax because it is based on the taxpayer's income and the tax rate increases as income increases. The tax on gasoline is also an excise tax, not a direct tax, because it is a tax on a specific good rather than a tax on income or property. Therefore, choice B is the only true statement.

Question 11

Which statement is true?

Accepted Answer

According to data from the Congressional Budget Office, in 2019, the federal government collected $1.9 trillion in direct taxes (such as individual and corporate income taxes) and $1.3 trillion in indirect taxes (such as excise taxes and tariffs). Therefore, the statement that the federal government collects much more in direct taxes than in indirect taxes is true.

Question 12

Transfer payments are paid mainly to

Accepted Answer

Transfer payments are payments made by a government to individuals or households without expectating anything in return, such as social security or unemployment benefits. They are not paid to business firms, foreign countries, or government bondholders.

Question 13

Which statement is true?

Accepted Answer

The correct statement is D, indicating that the author views the amount of foreign aid given to friends, allies, and poorer countries as relatively insignificant or "chump change" compared to the overall budget or expenditures. This phrase suggests that the author believes the amount is small, especially in the context of a country's total spending or GDP.

Question 14

The first year of the New Deal was

Accepted Answer

The New Deal was implemented by President Franklin D. Roosevelt in response to the economic crisis of the Great Depression, which began in 1929. Roosevelt was elected in 1932 and took office in March 1933, marking the beginning of the first year of the New Deal.

Question 15

Who said this? "...the sovereign has only three duties to attend to....first,the duty of protecting the society from violence and invasion ... ;secondly,the duty of protecting ...every member of the society from the injustice or oppression of every other member of it all;and thirdly,the duty of erecting and maintaining certain public works and public institutions,which it can never be for the interest of any individual ...to erect and maintain..."

Accepted Answer

This quote is from Adam Smith's book, "The Wealth of Nations," in which he argues for the role of government in protecting society from external threats and internal injustices, as well as providing for public works and institutions that benefit all members of society.

Question 16

Which statement is true?

Accepted Answer

According to data from the Congressional Budget Office, in fiscal year 2019, the federal government spent $1.03 trillion on Social Security and $644 billion on Medicare, while spending $712 billion on defense. Therefore, the federal government spends more on Social Security and Medicare (combined) than it does on defense. Option A is not true as the consumption sector consists of over two-thirds of the GDP while the government sector consists of one-third. Option B is also not true as a report from the Congressional Budget Office found that interest on the debt in fiscal year 2019 was $372 billion or 1.8% of GDP.

Question 17

Which statement is true?

Accepted Answer

The answer of Which statement is true?
...

Question 18

In 2010,a married couple with one child earning $32,000 would pay $2,448.00 in payroll tax and $__________ in federal income taxes.

Accepted Answer

In 2010, a married couple with one child earning $32,000 would likely have a low enough taxable income after standard deductions and exemptions to owe very little or no federal income tax, thus making option D (0) the correct answer.

Question 19

The federal tax on cigarettes is

Accepted Answer

The federal tax on cigarettes is an indirect tax because it is levied on the manufacturer or importer of cigarettes, who then passes the tax on to the consumer in the form of higher prices. It is also regressive because it disproportionately affects low-income individuals, who are more likely to smoke and spend a larger percentage of their income on cigarettes.

Question 20

Which statement is false?

Accepted Answer

The statement that the federal government collects more in Social Security taxes than in personal income tax is false. According to the Congressional Budget Office, in fiscal year 2019, personal income taxes accounted for 50% of federal revenue, while Social Security taxes accounted for 36%. Corporate income taxes accounted for only 7% of federal revenue.

Quiz 7: The Government Sector

An example of a transfer payment is

The federal personal income tax is

Who said this? "The government is best which governs least".

After the major income tax decrease for the high income earners in 1981,the federal deficit _______ by 1990.

Who,among the following,said this? "It is generally allowed by all,that men should contribute to the public charge but according to the share and interest they have in the public peace;that is,according to their estates or riches".

Which one of these people said this? "The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest amount of hissing."

Which statement is true?

A couple with two dependent children with a taxable income of $12,000 will

Statement I: The primary income sources of the rich are dividends,interest,and profit,none of which is subject to the Social Security tax. Statement II: The payroll tax is the federal government's fastest-growing source of revenue.

Which statement is true?

Which statement is true?

Transfer payments are paid mainly to

Which statement is true?

The first year of the New Deal was

Which statement is true?

Which statement is true?

In 2010,a married couple with one child earning $32,000 would pay $2,448.00 in payroll tax and $__________ in federal income taxes.

The federal tax on cigarettes is

Which statement is false?