20
QuizMultiple Choice

Preparing for the USCIS Civics Test — Unit test

Question 20 • * HSA 26-27 US Government

What happens to the amount of money the government collects in taxes if unemployment is high?

Answer
A
It is harder to collect.
B
It stays the same.
C
It goes down.
D
It goes up.

Explanation

When unemployment is high, fewer people are earning wages, so the government collects less in income taxes. Unemployed people also tend to spend less, which can reduce sales-tax revenue. Therefore, the amount of money the government collects in taxes goes down.

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