Study sets, textbooks, questions
Upgrade to remove ads
Econ Ch 14 Test
Terms in this set (23)
What do taxes collected under the Federal Insurance Contribution Act (FICA) fund?
Social Security and Medicare
Which of the following defines a means-tested program
Eligibility depends on income
Who generally bears most of a sales tax when the demand for the good taxed is inelastic?
What do social security taxes pay for
benefits to older citizens, surviving family members of wage earners, and people with certain disabilities
Which of the following is one reason the federal government collects income taxes as a person earns
so that the government can pay bills as they come due
What is the major difference between an operating budget and a capital budget
an operating budget is for day-to-day expenses; a capital budget is for investment spending
What is entitlement
a social welfare program providing benefits to people who meet certain eligibility requirements
What is the major source if tax revenue for local government
All of the following are constitutional limits on the power to tax EXCEPT that
exports must not be taxed
Your department store receipt says that you paid a 5% sales tax on sports equipment. This sales tax is an example of a
The sales tax on a $20.00 hammer is 7%, or $1.40. Why is this tax a bigger burden for Josh, who has a $15,000 income, than for Aaron, who had a $150,00 income
The tax represents a larger portion of Josh's income
Suppose your total taxable income this year is $75,000. You are taxed at a rate of 10% on the first $25,000, 20% on the next $25,000, and 30% on the final $25,000. What is your total income tax?
The demand for cable television is relatively elastic, since if the price gets too high, people will rent DVDs or videos instead of watching cable. Who is likely to bear the incidence of a 10% tax on cable television?
All but which of the following may be claimed as a tax deduction
money spent on household expenses
Your pay stub deducts money for FICA. What does this mean?
Money is being withheld to fund Social Security and Medicare
What is an example of discretionary spending
When you drive away from the gas pump, you have just paid a(n)
The federal government spends the largest amount if its budget on Social Security, which is an example of
What happens to the money that your employer withholds from your paycheck
Your employer sends it to the federal government to help pay your income tax bill.
Your aunt is a state employee. Her salary comes out of the state's
Which if the following is NOT tax exempt
The convenience store on the corner
Which of the following is an example of state spending
all of the above
The main source if funding for your school probably comes from
Local property taxes
Other sets by this creator
Econ Ch 14
DC Conscious /drug test
Ch 3 Vocab
Other Quizlet sets
Mass to Mass + Combustion
Psy 240 - Final Exam