Chapter 14 Quiz Kennedy 2nd Block
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Answer the following:
- 1.
Which amendment to the US Constitution permitted the federal income tax?
- A.
10th
- B.
14th
- C.
15th
- D.
16th
- E.
18th
Correct Answer
D. 16thExplanation
The correct answer is 16th. The 16th Amendment to the US Constitution, ratified in 1913, granted the federal government the power to impose and collect income taxes. Before this amendment, the federal government primarily relied on tariffs and excise taxes for revenue. The 16th Amendment significantly expanded the government's ability to generate funds through income taxation, which has since become a major source of revenue for the federal government.Rate this question:
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- 2.
A budget deficit occurs when expenditures exceed
- A.
Revenues
- B.
Borrowing
- C.
Appropriations
- D.
Inflation
- E.
Authorization
Correct Answer
A. RevenuesExplanation
A budget deficit occurs when expenditures exceed revenues. This means that the amount of money spent by the government is greater than the amount of money it receives through various sources such as taxes and fees. This can lead to a shortfall in funds and may require the government to borrow money or make appropriations from other sources to cover the deficit. Inflation and authorization are not directly related to budget deficits.Rate this question:
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- 3.
The income tax is generally progressive, meaning that
- A.
It increases incrementally on an annual basis
- B.
Those with more income pay higher rates of tax on their income
- C.
Those with more income pay more taxes than those with less income
- D.
It is a newer form of taxation than sales taxes
- E.
It is better than a flat tax
Correct Answer
B. Those with more income pay higher rates of tax on their incomeExplanation
The correct answer is that those with more income pay higher rates of tax on their income. This means that as a person's income increases, they are required to pay a higher percentage of their income in taxes. This is a progressive system because it aims to distribute the tax burden more equitably by placing a greater burden on those who can afford to pay more.Rate this question:
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- 4.
Which federal agency was created in order to collect the federal income tax?
- A.
Congressional Budget Office
- B.
Treasury Department
- C.
General Accounting Office
- D.
Auditors General
- E.
Internal Revenue Service
Correct Answer
E. Internal Revenue ServiceExplanation
The correct answer is the Internal Revenue Service. The IRS was created to collect the federal income tax. It is responsible for enforcing tax laws and regulations, processing tax returns, and collecting taxes from individuals and businesses. The agency plays a crucial role in funding the government through the collection of taxes, ensuring compliance with tax laws, and providing taxpayer assistance and education.Rate this question:
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- 5.
Tax expenditures are
- A.
Sales taxes paid when goods and services are purchased
- B.
Money spent by the IRS collecting taxes
- C.
Rebates provided to individuals who have overpaid federal taxes
- D.
Revenue losses that result from special exemptions, exclusions, or deductions on federal tax law
- E.
Income that is taxable by the federal government
Correct Answer
D. Revenue losses that result from special exemptions, exclusions, or deductions on federal tax lawExplanation
Tax expenditures refer to revenue losses that occur as a result of special exemptions, exclusions, or deductions in federal tax laws. These provisions allow certain individuals or entities to reduce their tax liability, resulting in a loss of revenue for the government. Examples of tax expenditures include deductions for mortgage interest, exemptions for certain types of income, and credits for specific activities or investments. These provisions are intended to incentivize certain behaviors or support specific industries or groups, but they reduce the amount of tax revenue collected by the government.Rate this question:
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- 6.
Tax expenditures tend most to benefit
- A.
Lower-income people
- B.
Lower middle-class and small business
- C.
The government
- D.
Middle and upper income people and corporations
- E.
State and local governments
Correct Answer
D. Middle and upper income people and corporationsExplanation
Tax expenditures refer to provisions in the tax code that provide special benefits or preferences to certain groups or activities. These provisions often result in a reduction in tax liability for those who qualify. Middle and upper income people and corporations tend to benefit the most from tax expenditures because they typically have higher incomes and more resources to take advantage of these provisions. Lower-income people and lower middle-class individuals may also benefit to some extent, but the magnitude of the benefit is generally greater for those with higher incomes. State and local governments may also benefit from tax expenditures, but they are not the primary beneficiaries.Rate this question:
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- 7.
Which of the following best describes incrementalism?
- A.
It is the best predictor of next year's budget
- B.
It provides a minimum level of income to older Americans
- C.
It is necessary to pay for big government
- D.
It is not determined by a fixed amount of money
- E.
It is necessary to balance the budget
Correct Answer
A. It is the best predictor of next year's budget -
- 8.
An example of incremental budgeting is
- A.
Reviewing an agency's budget to establish a lower base
- B.
Carter's zero-based budgeting
- C.
Reducing an agency's budget a little each year
- D.
Giving an agency a little more than it had last year
- E.
Breaking a budget into its components for review
Correct Answer
D. Giving an agency a little more than it had last yearExplanation
Incremental budgeting involves giving an agency a little more than it had in the previous year. This approach assumes that the previous year's budget was appropriate and makes small adjustments to it rather than starting from scratch. It is a common method used in budgeting as it allows for stability and gradual changes over time. By providing a slight increase in funding, the agency can continue its operations and potentially make improvements or expand its services.Rate this question:
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- 9.
In the House of Representatives, it is the __________Committee that writes tax codes, subject to the approval of Congress as a whole.
- A.
Ways and Means
- B.
Appropriations
- C.
Budget
- D.
Revenue
- E.
Finance
Correct Answer
A. Ways and MeansExplanation
The correct answer is "Ways and Means." In the House of Representatives, the Ways and Means Committee is responsible for writing tax codes. These tax codes are then subject to the approval of Congress as a whole. The committee plays a crucial role in shaping the nation's tax policy and ensuring that the government has the necessary revenue to fund its programs and initiatives.Rate this question:
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- 10.
The heads of executive agencies send their budget requests to the
- A.
Office of Management and Budget
- B.
Congressional tax committee
- C.
President
- D.
Treasury Department
- E.
House Ways and Means Committee
Correct Answer
A. Office of Management and BudgetExplanation
The heads of executive agencies send their budget requests to the Office of Management and Budget. This is because the Office of Management and Budget is responsible for assisting the President in preparing the annual budget proposal, evaluating the effectiveness of agency programs and policies, and coordinating the administration's financial management efforts. It serves as a central agency that reviews and analyzes the budget requests from executive agencies before they are submitted to Congress for approval.Rate this question:
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- 11.
Once the Office of Management and Budget has prepared the federal budget
- A.
It is sent to the Treasury for implementation
- B.
The President makes revision and submits it to Congress
- C.
It is either signed or vetoed
- D.
Congress votes within 10 days
- E.
It becomes a law
Correct Answer
B. The President makes revision and submits it to CongressExplanation
After the Office of Management and Budget has prepared the federal budget, it is sent to the Treasury for implementation. However, before it becomes a law, the President has the authority to make revisions to the budget and then submits it to Congress for approval. Congress then has the power to either sign or veto the budget within a period of 10 days. If Congress votes in favor of the budget, it becomes a law.Rate this question:
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- 12.
Congress's control over federal appropriations is more commonly known as
- A.
The power of the purse
- B.
Bully pulpit
- C.
Oversight
- D.
The great pocketbook
- E.
Trump ticket
Correct Answer
A. The power of the purseExplanation
The phrase "the power of the purse" refers to Congress's authority to control government spending and appropriations. This power allows Congress to allocate funds for various programs, projects, and agencies, giving them significant influence over the financial decisions of the federal government. By controlling the purse strings, Congress can shape and prioritize the use of taxpayer money, making it a crucial tool in their legislative power.Rate this question:
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May 24, 2023Quiz Edited by
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Jan 27, 2012Quiz Created by
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