Economics 16-20 Questions and Answers Already Passed

Economics 16-20 Questions and Answers Already Passed What impact can taxes have on the economy? Higher taxes reduce demand because consumers have less money to spend. Lower taxes reduce trade because the government has fewer funds to invest on roads. Lower taxes increase unemployment because the government cannot hire as many workers. Higher taxes reduce supply because the government has more money to invest in goods and services. Higher taxes reduce demand because consumers have less money to spend. What is an argument against the benefit taxation principle? People who earn less money simply cannot afford to pay for some benefits. It unfairly taxes people who do not take advantage of a benefit. Corporations would hire fewer workers because of the heavy burden. The regressive structure places a heavier burden on the wealthy. People who earn less money simply cannot afford to pay for some benefits. How are payroll taxes used? They are used for entitlement programs like Social Security. They are used for energy and environmental programs. They are used for federal education programs. They are used for worker safety programs like the Occupational Safety and Health Administration. They are used for entitlement programs like Social Security. Some states collect a sin tax on products like alcohol and tobacco. What outcome would a state expect when levying a sin tax? It would expect a decrease in demand. It would expect a decrease in supply. It would expect an increase in demand. It would expect an increase in supply. It would expect a decrease in demand. Which is an argument against implementing a value-added tax (VAT)? It places an unfair burden on people with lower incomes. It places an unfair burden on large corporations. It places an unfair burden on people with higher incomes. It places an unfair burden on small businesses. It places an unfair burden on people with lower incomes. Which is a feature of a flat tax? It is not progressive and remains the same for all consumers. It is regressive and increases for consumers with lower incomes. It provides greater tax deductions for consumers. It is more complicated than other tax systems. It is not progressive and remains the same for all consumers. What is the purpose of the Internal Revenue Service? It collects income taxes for the federal government. It provides deposit insurance for banking customers. It conducts the nation's monetary policy, such as setting interest rates. It manufactures and prints the nation's money sup