Question

sales taxes property taxes income taxes and fees of various kinds:

a) provide revenue for spending by state and local government.

b) are the least used types of revenue generation used by state government.

c) fund government spending at the federal levels.

d) are exampls of implicit liabilities.

Transfer payments are payments which:\

a) which are essentially tax refund.

b) governments make to households when government receives a good or service.

c) governements make to households even of government had not received a good or service from the household.

d) erode the purchasing power of the economy.

The government has a budget deficit if:

a) its total revenues are greater than its total expenditures.

b) its total revenues are equal to its total expenditures.

c) the money supply is less than total expenditures.

d) its total revenues are less than its total expenditure.

Answer 1

1) Solution: provide revenue for state and local governments.

Explanation: The state and local governments receive their revenue from sales taxes, income taxes, property taxes, and fees of various kinds

2) Solution: government make to households even of government had not received a good or service from the household.

Explanation: Transfer payments do not directly absorb resources or create output.

'3) Solution: its total revenues are less than its total expenditure

Explanation: Deficit spending occurs whenever a government's revenues is lesser than its expenditures over a fiscal period, enlarging or creating a government debt balance