Is the police considered a public or a private good?
Public
100
Are sales tax a progressive or a regressive tax?
Regressive
100
Is a school considered a public or private good? Explain your answer
Depends on explanation
100
Would a gasoline tax be considered progressive or regressive?
Regressive
100
Would the movie theatre be considered a public or a private good?
Private
200
What is a tax deduction?
an amount subtracted from Adjusted Gross Income to lower the amount of tax owed.
200
What is tax avoidance?
to lower your taxes by investing in bonds with tax-exempt interest, saving in IRAs for your own retirement, taking the proper number of personal exemptions, and other tax credits
200
What is a progressive tax?
a tax for which the percentage of income paid in taxes increases as income increases
200
Give an example of a positive externality
elementary education
200
What is a regressive tax?
a tax for which the percentage of income paid in taxes decreases as income increases
300
Who was social security originally meant for?
senior citizens
300
Give an example of a negative externality
air pollution caused by cigarette smoking
300
Who has to file income taxes?
individuals and businesses
300
What is one criteria to measure fairness in taxes?
Ability to pay
300
What is a private good?
consumers who purchase these goods consume these goods
400
What is the difference between gross pay and take home pay?
Gross pay is the amount the employee earns.
Net pay, or take-home pay, is the amount the employee receives after deductions
400
What are exclusions?
dollar amounts of income that are tax-exempt, or not subject to federal income tax.
400
What is a public good?
Goods, often supplied by the government, for which use by one person does not reduce the quantity of the good available for others to use, and for which consumption cannot be limited to those who pay for the good
400
What are some things taken out of your gross pay?
Social Security taxes
Medicare taxes
income tax withheld
other amounts withheld
400
What is social security?
provides a regular income to retired and disabled workers and the unemployed
500
What is an income tax?
A tax that governments impose on financial income generated by all entities within their jurisdiction.
500
Give an example of a tax credit
child care tax credit, a residential energy improvement tax credit, a credit for certain education expenses, or a business tax credit for starting an employee pension program
500
What is shared consumption?
When one person consumes a public good, it does not
prevent others from also consuming the good.
500
What is taxable income?
the amount of income that is taxed after all deductions but before tax credits.
500
What are some things income tax pays for?
state police, state parks and beaches, road maintenance, and unemployment compensation, but the lion’s share of state spending supports P/K – Grade 12 education