Chapters 9 and 10 economics with financial literacy

Question 1

The process to approve the budget goes...

Accepted Answer

president, congress, president

Question 2

which is an example of discretionary spending

Accepted Answer

national defense

Question 3

Which is an example of a proportional tax

Accepted Answer

Medicare Tax

Question 4

In 2006 which of the following countries has the lowest tax burden

Accepted Answer

Japan

Question 5

If the tax is progressive, and Brett's salary triples, his taxes will

Accepted Answer

increase by more than 3 times

Question 6

which simplifies the tax code

Accepted Answer

flat tax

Question 7

the incidence of a tax is the tax burden

Accepted Answer

true

Question 8

largest sector of spending on local government budgets is...

Accepted Answer

schools

Question 9

All levels of government combined CONSUME about ____ of the nation's output

Accepted Answer

1/3

Question 10

Medicare and Social Security taxes combine to make up

Accepted Answer

FICA

Question 11

taxes for education and public welfare typically come from

Accepted Answer

intergovernmental revenue

Question 12

The Omnibus Budget Reconciliation Act attempted to reduce the deficit by ____ over 5 years.

Accepted Answer

$500 billion

Question 13

If a $1 tax is added and the price increases by $.20, how much was absorbed by each group

Accepted Answer

producer absorbed $.80, consumer absorbed $.20

Question 14

The Taxpayer Relief Act of 1977

Accepted Answer

did not benefit the poor

Question 15

largest portion of the state government budget is ___

Accepted Answer

intergovernmental spending

Question 16

when an item is inelastic, an increase in price will result in ....

Accepted Answer

very small decrease in quantity demanded

Question 17

the alternative minimum tax requires the wealthy to pay a minimum of

Accepted Answer

20%

Question 18

if an item is inelastic, the incidence of the tax will most likely fall on

Accepted Answer

the consumer

Question 19

If there is a proportional tax of 10%, and Brett makes $54,000. How much will Brett owe in tax

Accepted Answer

$5,400

Question 20

Which tax was capped at a $80,400 level of income in 2008?

Accepted Answer

Social Security

Question 21

Which Amendment created the income tax

Accepted Answer

16th

Questions 21