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Chapter 17 Test Bank
Multiple Choice Questions
1. If South Dakota's governor reports a budget surplus in 2011, that state government
likely:
A. received more in taxes than it spent in that year.
B. increased the proportional tax level.
C. equalized spending and taxes in that year.
D. increased the corporate income tax rate.
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
2. If the state of Washington's government collects $75 billion in tax revenues in 2013
and total spending in the same year is $74.8 billion, the result will be a:
A. budget deficit.
B. budget surplus.
C. decrease in payroll tax.
D. decrease in proportional taxes.
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
3. If the government for the state of Washington collects $65.8 billion in tax revenues in
2013 and total spending in the same year is $74.8 billion, the result will be:
A. an increase in payroll tax.
B. an increase in excise tax.
C. a budget surplus.
D. a budget deficit.
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
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4. A ______________________ is created each time the federal government spends
more than it collects in taxes in a given year.
A. budget deficit
B. budget surplus
C. corporate tax
D. regressive tax
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
5. A ______________________ means that government spending and taxes are equal.
A. fiscal budget
B. balanced budget
C. contractionary fiscal policy
D. discretionary fiscal policy
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
6. A __________________________ policy will cause a greater share of income to be
collected from those with high incomes than from those with lower incomes.
A. proportional tax
B. regressive tax
C. progressive tax
D. excise tax
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
7. A ________________________________ is calculated as a flat percentage of
income earned, regardless of level of income.
A. progressive tax
B. regressive tax
C. proportional tax
D. estate and gift tax
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Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
8. When the share of individual income tax collected by the government from people with
higher incomes is smaller than the share of tax collected from people with lower
incomes, then the tax is ____________________.
A. optional
B. proportional
C. progressive
D. regressive
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
9. In 2010, Microsoft will pay corporate income tax to the federal government based on
the company's __________________.
A. proportional tax rate
B. corporate profits
C. optional tax rate
D. excise profits
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
10. What do goods like gasoline, tobacco, and alcohol typically share in common?
A. A progressive tax is imposed on each of them.
B. A regressive tax is imposed on each of them.
C. They are all subject to government excise taxes.
D. They are all subject to government fiscal taxes.
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
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Chapter 17 Test Bank
Multiple Choice Questions
1. If South Dakota's governor reports a budget surplus in 2011, that state government
likely:
A. received more in taxes than it spent in that year.
B. increased the proportional tax level.
C. equalized spending and taxes in that year.
D. increased the corporate income tax rate.
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
2. If the state of Washington's government collects $75 billion in tax revenues in 2013
and total spending in the same year is $74.8 billion, the result will be a:
A. budget deficit.
B. budget surplus.
C. decrease in payroll tax.
D. decrease in proportional taxes.
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
3. If the government for the state of Washington collects $65.8 billion in tax revenues in
2013 and total spending in the same year is $74.8 billion, the result will be:
A. an increase in payroll tax.
B. an increase in excise tax.
C. a budget surplus.
D. a budget deficit.
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
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4. A ______________________ is created each time the federal government spends
more than it collects in taxes in a given year.
A. budget deficit
B. budget surplus
C. corporate tax
D. regressive tax
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
5. A ______________________ means that government spending and taxes are equal.
A. fiscal budget
B. balanced budget
C. contractionary fiscal policy
D. discretionary fiscal policy
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
6. A __________________________ policy will cause a greater share of income to be
collected from those with high incomes than from those with lower incomes.
A. proportional tax
B. regressive tax
C. progressive tax
D. excise tax
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
7. A ________________________________ is calculated as a flat percentage of
income earned, regardless of level of income.
A. progressive tax
B. regressive tax
C. proportional tax
D. estate and gift tax
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Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
8. When the share of individual income tax collected by the government from people with
higher incomes is smaller than the share of tax collected from people with lower
incomes, then the tax is ____________________.
A. optional
B. proportional
C. progressive
D. regressive
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
9. In 2010, Microsoft will pay corporate income tax to the federal government based on
the company's __________________.
A. proportional tax rate
B. corporate profits
C. optional tax rate
D. excise profits
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
10. What do goods like gasoline, tobacco, and alcohol typically share in common?
A. A progressive tax is imposed on each of them.
B. A regressive tax is imposed on each of them.
C. They are all subject to government excise taxes.
D. They are all subject to government fiscal taxes.
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
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