Exam 12: The Public Sector

Which of the following categories accounted for the lowest percent of the total federal government expenditures in recent years?

A special interest group cannot impose its will on the majority because the perceived costs and benefits from government programs are the same for both groups.

Consider two people, Sandy Smith, who earns $25,000, and Gary Carver, who earns $50,000. If the government has decided to tax everyone's first $25,000 at 20 percent and everyone's second $25,000 at 40 percent, then Gary pays:

A tax for which the rate varies directly with the income of the person taxed is known as a(n):

How does total taxes as a percentage of GDP in the United States compare to those of Western European countries, such as the United Kingdom, Germany, and Sweden?

Which of the following is an example of a progressive tax?

People who often create benefits for the minority and impose the cost on the majority are called:

According to public choice theory, why might government policy benefit only a narrow interest group?

The three major revenue sources for the federal government in order of decreasing percentages are individual income taxes, corporate taxes, and social security insurance.

The income security program category for federal government outlays includes spending for:

A tax is structured so that the tax as a percentage of income declines as the level of income increases is called a(n):

The Social Security payroll tax tends to be regressive.

Which of the following categories accounted for the third largest percentage of total federal government expenditures?

When the tax structure of a nation is progressive, as incomes increase, the tax rate:

If a tax rate falls as a person's income rises, the tax is a:

According to the public choice theory, voters who choose to remain uninformed about the issues are behaving irrationally.

After 1970, the share of federal spending allocated to national defense:

The study of the decision-making process of government is the study of:

A tax whose impact varies inversely with the income of the person taxed, and poor people have a higher percentage of their income taxed than rich people, is known as a:

Public choice theory argues that one reason for rational voter ignorance is the indivisibility of public service.