True or false
1. Taxation is not the primary way the government collects money.
2. The government is able to maintain highways, provide for national defense and law enforcement and help those in need through the payment of our taxes.
3. The more elastic the demand for a product, the more the seller bears the burden of the taxes placed on it.
4. In relation to the fairness of a tax, the benefits-received principle supports the theory that those who will benefit most from the tax, pay the least.
5. Income taxes follow the “pay as you earn” system because for many, it would be too difficult to pay their taxes in one lump sum.
6. Completing a tax return allows you to determine whether the amount of income taxes you have paid is higher or lower than the amount you actually owe.
7. Social Security and Medicaid are programs that are both “means-tested” and therefore, benefits are dependent on one’s income.
8. Raising taxes is one of the government’s expansionary fiscal policies.
9. The government will sometimes use contractionary fiscal policies when demand for products exceeds supply and inflation might be the result.
10. The government will increase its spending in an attempt to increase aggregate demand which will lead to lower unemployment and an increase in output.
