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. Use the passage to answer the question. 1. For the additional green spaces to be considered public services, what must be true? (1 point)
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.
2. What is one source of revenue for the federal government to pay for public goods and services? (1 point)
property taxes
sales taxes
income taxes ***
excise taxes
3. What is one of the things the Federal Reserve System does? (1 point) set income tax rates at the federal level influence interest rates decide who can open bank accounts give loans to bank customers
4. How might the government deal with a huge company that has no competitors and is charging customers high prices? (1 point) 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 2/2 A new administration reforms a state’s tax code.
Corporate tax was increased by 3%, allowing the valueadded 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.
Use the passage to answer the question.
5. What is a likely effect of this change in tax policy? (1 point)
Highincome 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
1. The local govt uses tax $ to create them. 2. income taxes 3. Influence interest rates 4. break the company up into smaller competing firms 5. There are really 2 answers that work here: higher income people may choose to leave the state if they are owners of these corporations, also non-profits may become a larger part of the economy because corporations will donate a larger portion of their taxable income to the non-profits to offset their higher corporate tax liability from the tax increase
