Economics Week 4 Questions and Answers Already Graded A

Economics Week 4 Questions and Answers Already Graded A What impact can taxes have on the economy? 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. How are payroll taxes used? They are used for entitlement programs like Social Security. Read the sentence. 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. Which is an argument against implementing a value-added tax (VAT)? 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. What is the purpose of the Internal Revenue Service? It collects income taxes for the federal government. Read the statement. _[blank]_ of the Constitution states that the government's collection of income taxes is legal. Which accurately completes the sentence? Amendment XVI What type of government expenditure is defense spending? goods and services What impact could the opening of a military base have on a local economy? Businesses would spring up to meet the needs of those on the base. Which explains why cutting the federal budget is difficult? Only discretionary spending can be cut, and it is a smaller portion of the budget. Once the federal budget is set, how is money allocated? through the appropriations committees How do unfunded mandates impact state spending? The mandates force states to spend money in ways they did not anticipate. What is a significant expense for states but not for the federal government? education Which items are primary areas of assistance for social welfare? food, housing, and medical care What are the primary opposing viewpoints concerning social welfare? (Select all that apply.) Individuals and private groups should assist those in need; there is no place for the government. The government or society should provide social welfare. Read the scenario. For three years in a row, the federal government's expenditures exceeded its revenue. As a result, the federal debt grew by $4 billion, and the interest payment on the federal debt increased substantially. Which are true about the scenario? (Select all that apply.) The federal government's increase in debt led to an increase in interest payments. The federal government's deficit spending led to an increase in the federal debt. Which is a way the United States' federal debt impacts its economy? It has a negative impact because the federal government has to make large interest payments on that debt. What are examples of discretionary government spending? (Select all that apply.) The government allocates discretionary spending for national parks. The government allocates discretionary spending for national defense. The government allocates discretionary spending for space programs. What type of spending includes line items on a federal budget that have bypassed normal processes and are used to benefit a small group of people