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practice testMultiple Choice

Practice Test

Question 1 • Economics

Which best describes why governments collect taxes?

Answer
A
to control the value of currency
B
to keep the government running
C
to fund government programs
D
to ensure surplus funds

Explanation

Governments collect taxes to raise money for public services and programs, such as schools, roads, and public safety. This makes “to fund government programs” the best description; keeping the government running is a broader way of describing what that funding supports.

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