Holt 7525-9 S15_IT

Questions for Chapter 13
Fill-in-the-blanks:
1. A ______________________ tax imposes the same tax rate on all levels of income.
2. A ______________________ tax imposes higher tax rates on higher levels of income.
3. A ______________________ tax imposes higher tax rates on lower levels of income.
4. ______________________ ______________________ is the amount that the burden
imposed by a tax exceeds the funding provided by the tax.
5. ______________________ are exclusions and exemptions from income, deductible
expenses, and tax credits.
6. A budget ______________________ occurs when government expenditures are
greater than tax revenues.
7. The ______________________ debt is the total amount the federal government owes
its creditors.
Multiple Choice:
___ 1. Which type of tax causes the distribution of income to be unchanged?
a. proportional
b. progressive
c. regressive
___ 2. Which of the following taxes is regressive?
a. sales tax
b. property tax
c. lottery tax
d. All of the above
___ 3. The federal personal income tax:
a. is the largest source of federal tax revenue
b. is a progressive tax
c. may hurt productivity
d. All of the above
___ 4. The social security tax:
a. is the largest source of federal tax revenue
b. is a progressive tax
c. is partially hidden from taxpayers
d. All of the above
___ 5. The social security system:
a. encourages retirement
b. redistributes income from groups with a shorter average life expectancy to groups
with a longer average life expectancy
c. Both of the above
d. Neither of the above
FOR REVIEW ONLY - NOT FOR DISTRIBUTION
Taxes, Deficits, and the National Debt 13 - 12