1. The biggest sources of revenue for the government are (Points : 2)
fines and license fees.
taxes.
national park admissions and fund raising events.
profits and interest payments.
2. A government expenditure is (Points : 2)
a tax on income.
borrowing from foreign governments.
money spent on programs, services, needs.
money coming into the government.
3. The government agency that collects taxes is the (Points : 2)
Federal Reserve Board.
Social Security Administration.
Internal Revenue Service.
Congressional Budget Office.
4. Money that the government owes is called (Points : 2)
the Federal Reserve.
the Federal Budget.
the Federal Excess.
the Federal Debt.
5. Many of the expenditures of the government are considered uncontrollable expenditures. Which of the following would not be an uncontrollable expenditure? (Points : 2)
Social Security payments
Medicare costs
unemployment compensation
salaries for federal officials.
6. A portion of individual and corporate revenue that is paid to the government is known as (Points : 2)
income tax.
federal debt.
deficit spending.
the Federal Reserve System.
7. Which of the following is true of the federal debt? (Points : 2)
It has been increasing over time.
It has been decreasing over time.
There has been a sharp decline in the federal debt since 2005.
The federal debt has never exceeded a trillion dollars.
8. Which of the following is true of the Social Security System? (Points : 2)
It pays benefits to the elderly.
It pays benefits to the disabled.
It pays benefits to the widowed.
All of the above.
9. The federal income tax is described as a progressive tax system because (Points : 2)
the more you make, the less you are required to pay.
individuals who make more money, pay more taxes.
income taxes always increase and are never reduced.
it is generally accepted as a positive approach to funding all government expenses.
10. Which of the following is true of the Social Security Trust Fund? (Points : 2)
Due to the high employment level, income to the fund exceeds expenses/payouts.
More people are collecting money from the fund than are paying into it.
According to government regulations, the same amount of money is collected into the fund as is paid out.
The Law of supply and Demand assures an equal balance of revenue and expenditures.