1. what program provides the largest source of funds for health care for america’s poorest people? social security medicaid medicare supplemental security 2.if the federal government raises taxes on gasoline and consumers take on most of the burden of the tax, then the supply curve for gasoline would shift to the right the demand curve for gasoline would be relatively inelastic the demand curve for gasoline would be relatively elastic there would be an upward movement along the supply curve for gasoline 3.why is social security and medicare spending expected to increase further in the near future? the baby boomer generation will qualify for both programs. the people who qualify will all receive the maximum benefit. the generation over age 85 will qualify for expensive medical programs. the amounts people receive are expected to take a big jump. 4.what provides the largest portion of federal revenue? corporate taxes tariffs fica taxes individual income taxes 5. on which of the following goods or services might a tax increase be hardest to pass on to consumers? prescription medications groceries gasoline automatic car washes 6.how is the federal income tax a progressive tax? the higher the income a person has, the higher the percentage that person pays in tax. two married people who file their taxes together will pay more taxes than a single person will. a person with a higher income pays more money in taxes, although the percentage he or she pays as tax is less. children pay no taxes, regardless of whether they earn a large income. 7.the operating budget is a budget in which revenues are equal to spending. a budget for major capital, or investment, expenditures. spending on certain programs that is mandated, or required, by existing law. a budget for day-to-day expenses. 8.which is a tax in which the percentage paid decreases as income increases? regressive tax progressive tax revenue tax base 9. a balanced budget is a budget for day-to-day expenses. in which revenues are greater than spending. for major capital, or investment, expenditures. in which revenues are equal to spending. 10.which of the following statements concerning state sales tax is correct? all 50 states collect sales tax. states that have a state income tax do not collect sales taxes. some states impose so-called sin taxes. only the federal government is authorized to tax gasoline. 11.which of the following defines a means-tested program? people pay first and receive benefits later. any person who is a u. s. citizen is eligible. age is a major criterion for eligibility. eligibility depends on income. 12.what do social security taxes pay for? benefits to older citizens and people with certain disabilities benefits to federal workers and military personnel transportation and training expenses for low-income people benefits to those who are unemployed 13.the constitution defines all of the following as limits of the government’s power to tax except that congress cannot tax church services. federal taxes must be the same in every state. the federal government is authorized to tax imports and exports. the purpose of federal taxes is for the common defense and general welfare of the nation.