The citizens of a small city have been eager to see more green space in their environment. There are several abandoned lots that activists think could be turned into community gardens or parks for people to freely enjoy.
Question
Use the passage to answer the question.
For the additional green spaces to be considered public services, what must be true?
(1 point)
Responses
The local government uses tax money to create them.
A national business provides funding for some of the spaces.
People who purchase season passes to the spaces get access.
Citizens hold a fundraiser to pay for the project.
To be considered public services, it must be true that the local government uses tax money to create the additional green spaces.
What is one source of revenue for the federal government to pay for public goods and services?
(1 point)
Responses
property taxes
sales taxes
income taxes
excise taxes
One source of revenue for the federal government to pay for public goods and services is income taxes.
What is one of the things the Federal Reserve System does?
(1 point)
Responses
set income tax rates at the federal level
influence interest rates
decide who can open bank accounts
give loans to bank customers
One of the things the Federal Reserve System does is influence interest rates.
How might the government deal with a huge company that has no competitors and is charging customers high prices?
(1 point)
Responses
break the company up into smaller competing firms
fine the company based on its profits for a given year
force the company to pay taxes at a higher rate
assign a government agent to observe the company’s leadership
One option for the government to deal with a huge company that has no competitors and is charging customers high prices is to break the company up into smaller competing firms.
A new administration reforms a state’s tax code. Corporate tax was increased by 3%, allowing the value-added tax on consumer goods to be reduced by 5%. This had no net effect on the state budget as the two tax changes balanced each other out.
Question
Use the passage to answer the question.
What is a likely effect of this change in tax policy?
(1 point)
Responses
High-income people will choose to leave the state.
Nonprofits will become a larger part of the economy.
Consumers in the state will choose to buy fewer things.
Financial institutions will be less likely to invest in the state’s companies.