1. The chief way the federal government raises revenue is from (1 point)
A) borrowing money.
B) foreign aid.
C) individual income taxes.
D) corporate taxes.
2. People use these legal strategies to avoid paying higher taxes. (1 point)
A) tax loopholes
B) tax reforms
C) discount rates
D) tax credits
3. Expenditures required by law or those from previous budgetary commitments are (1 point)
A) uncontrollables.
B) incrementalism.
C) audits.
D) social insurance taxes.
4. The power to raise revenue and pass appropriations is the power of (1 point)
A) the president.
B) the people.
C) Congress.
D) the Supreme Court.
5. Beginning in the 1930s the United States had an unbalanced budget, or (1 point)
A) fiscal policy.
B) monetary policy.
C) audit.
D) deficit.
6. Because it is based on a taxpayer's ability to pay, the federal government's tax is called a (1 point)
A) progressive tax.
B) withholding tax.
C) regressive tax.
D) audit tax.
7. Taxes on manufacturing, transportation, and sale or consumption of goods on the performance of services are called (1 point)
A) tax loopholes.
B) excise taxes.
C) corporate taxes.
D) custom taxes.
8. This concept means that the total federal budget changes only a little from one year to the next. (1 point)
A) reconciliation
B) fiscal policy
C) money economy
D) incrementalism
9. The United States economy is a (1 point)
A) regressive tax economy.
B) market economy.
C) fiscal policy economy.
D) monetary policy economy.
10. This action is a responsibility of the Board of Governors of the Federal Reserve System. (1 point)
A) collect tax revenue
B) set tax limits
C) raise or lower the reserve requirement
D) allocate taxes

