12.3-12.4 quiz

Which of the following is an example of flat tax?

Taxpayer who makes $5,000 pays the same tax rate as someone who earns $500,000

Business license

The price of a product goes down and demand for the product can rise because it costs loss

Sales, Service Revenues, Fees Earned, Interest Revenue, Interest Income

When raising revenue what is the problem state government faces that federal government does not?

Not enough citizens

To raise taxes they relay on voters

Federal government does not allow them to raise taxes

Citizens don't like to pay taxes

State and local government spend most of their money on education

True

False

State and local government spend most of their money on education

True

False

If mandatory spending increases, discretionary spending decreases

True

False

If the government does not have enough money to cover all its expenses the it will lead to federal deficit

True

False

Tax rate

A tax that takes a larger share of income as income increases

The percentage of income or of the value of a good, service, or asset that is paid in tax

Spending that is fixed by law

Sales, Service Revenues, Fees Earned, Interest Revenue, Interest Income

Proportional tax

A tax that takes a larger share of income as income increases

Spending that is fixed by law

A tax that takes the same share of income at all income levels

The percentage of income or of the value of a good, service, or asset that is paid in tax

Progressive tax

tax that takes a larger share of income as income increases

tax that takes a smaller share of income as income increases

Income, especially when of a company or organization and of a substantial nature

Move or cause to move from one place to another, especially over a small distance

Regressive tax

Leading producer and marketer of computer software.

An insistent and peremptory request, made as if by right

Single instruction that expands automatically into a set of instructions to perform a particular task

X that takes a smaller share of income as income increases

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