1. On average, U.S. households with income in the bottom 20% pay _____ of their incomes in federal income tax.

   	A.	less than 5%
   	B.	between 5% and 15%
   	C.	more than 25%
   	D.	between 15% and 25%

2. The Social Security program in the United States is financed by:

   	A.	FICA tax revenue.
   	B.	excise tax revenue.
   	C.	corporate income tax revenue.
   	D.	individual income tax revenue.

3. When fiscal policy is done through tax cuts instead of spending increases:

   	A.	the resulting spending won't pass the cost–benefit test.
   	B.	there are likely to be many “bridges to nowhere.”
   	C.	the resulting fiscal stimulus will be spent by the government.
   	D.	individuals rather than government employees will decide how the stimulus gets spent.

4. Which could be sources of funding for a government that wants to increase government expenditures?

   	A.	both taxes and borrowing
   	B.	neither taxes nor borrowing
   	C.	taxes only
   	D.	borrowing only