Chapter 30: Q.26 (page 742)
What is the difference between a progressive tax, a proportional tax, and a regressive tax?
Progressive tax is levied heavily on the ones with high income; proportional tax is levied equal on every income group; and regressive tax is levied heavily on lower income groups.
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True or False:
a. Federal spending has grown substantially in recent decades.
b. By world standards, the U.S. government controls a relatively large share of the U.S. economy.
c. A majority of the federal government's revenue Is collected through personal income taxes.
d. Education spending is slightly larger at the federal level than at the state and local level.
e. State and local government spending has not risen much in recent decades.
f. Defense spending is higher now than ever.
g. The share of the economy going to federal taxes has increased substantially over time.
h. Foreign aid is a large portion, although less than half, of federal spending.
i. Federal deficits have been very large for the last two decades.
j. The accumulated federal debt as a share of GDP is near an all-time high.
The social security tax is
or proportional?
What is the difference between discretionary fiscal policy and automatic stabilizers?
When governments run budget deficits, how do they make up the differences between tax revenue and spending?
Suppose that gifts were taxed at a rate of
Would this tax be regressive or progressive?
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