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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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