Question 1

Politics

Accepted Answer

A) play no role in public finance. 
B) influence government decisions. 
C) have to be factored into economic decision making. 
D) do all of the above. 
A) play no role in public finance. 
B) influence government decisions. 
C) have to be factored into economic decision making. 
D) do all of the above. D

Question 2

Expenditures,as a percentage of GDP for the United States,are not very different than those of other industrialized nations.

Accepted Answer

A) True 
 B)False  True

Question 3

Write an essay discussing some of the reasons that federal expenditures for Social Security have increased since 1965.

Accepted Answer

Federal expenditures for Social Security have increased since 1965 for several reasons,including increases in the number of persons entitled to benefits and the introduction of Medicare and other programs.

Question 4

Taxes

Accepted Answer

A) are mandatory payments. 
B) are necessary for financing government expenditures. 
C) do not directly relate to the benefit of government goods and services received. 
D) are all of the above. 
A) are mandatory payments. 
B) are necessary for financing government expenditures. 
C) do not directly relate to the benefit of government goods and services received. 
D) are all of the above.

Question 5

Public finance

Accepted Answer

A) is not like public economics. 
B) develops principles for understanding the economic role of government. 
C) only works for local and state governments. 
D) is all of the above. 
A) is not like public economics. 
B) develops principles for understanding the economic role of government. 
C) only works for local and state governments. 
D) is all of the above.

Question 6

Education is

Accepted Answer

A) generally financed at the state and local level. 
B) too expensive for the federal government. 
C) generally financed at the federal level. 
D) financed on a voluntary basis. 
A) generally financed at the state and local level. 
B) too expensive for the federal government. 
C) generally financed at the federal level. 
D) financed on a voluntary basis.

Question 7

The federal government

Accepted Answer

A) is the largest taxing entity in the country. 
B) is only concerned with international issues. 
C) spends heavily on net interest. 
D) is all of the above. 
A) is the largest taxing entity in the country. 
B) is only concerned with international issues. 
C) spends heavily on net interest. 
D) is all of the above.

Question 8

In 1965,national defense was just as large a general expenditure as Social Security.

Accepted Answer

A) True 
 B)False

Question 9

Individuals

Accepted Answer

A) are too small to matter in macroeconomic decision making. 
B) need to participate in a democracy. 
C) make up the government. 
D) a and b. 
E) b and c. 
A) are too small to matter in macroeconomic decision making. 
B) need to participate in a democracy. 
C) make up the government. 
D) a and b. 
E) b and c.

Question 10

Payroll taxes are a major financing tool at the federal level.

Accepted Answer

A) True 
 B)False

Question 11

A government good or service includes

Accepted Answer

A) bridges. 
B) parks. 
C) national defense. 
D) all of the above. 
A) bridges. 
B) parks. 
C) national defense. 
D) all of the above.

Question 12

The Constitution of the United States says nothing about state economic activity.

Accepted Answer

A) True 
 B)False

Question 13

Social insurance has become an increasingly large portion of federal taxes because of the "Baby Boomer" generation.

Accepted Answer

A) True 
 B)False

Question 14

State and local governments receive the largest amount of revenue from

Accepted Answer

A) personal income taxes. 
B) property taxes. 
C) sales taxes. 
D) payroll taxes. 
A) personal income taxes. 
B) property taxes. 
C) sales taxes. 
D) payroll taxes.

Question 15

Why do/should we care that federal expenditures are becoming an increasingly larger portion of GDP?

Accepted Answer

We should care that federal ex

Question 16

Local governments rely heavily on property taxes.

Accepted Answer

A) True 
 B)False

Question 17

Government output is hard to account for because government

Accepted Answer

A) is so large. 
B) provides goods that have no resale value. 
C) keeps secrets about what it produces. 
D) goods are generally not sold or produced in easily measurable units. 
A) is so large. 
B) provides goods that have no resale value. 
C) keeps secrets about what it produces. 
D) goods are generally not sold or produced in easily measurable units.

Question 18

Do you think it is correct policy that the federal government is not required to finance all of its expenditures with tax revenues and is allowed to borrow? What are the implications of this policy?

Accepted Answer

Answers will vary,but financing out of c

Question 19

Economists who study the role of government in the market

Accepted Answer

A) agree mostly on the role that the government should play. 
B) study for market problems that the government might help solve. 
C) find that supply and demand graphs never work for the government. 
D) do none of the above. 
A) agree mostly on the role that the government should play. 
B) study for market problems that the government might help solve. 
C) find that supply and demand graphs never work for the government. 
D) do none of the above.

Question 20

In 2005,the federal government spent 345.8 billion dollars on income security.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction

Politics

Expenditures,as a percentage of GDP for the United States,are not very different than those of other industrialized nations.

Write an essay discussing some of the reasons that federal expenditures for Social Security have increased since 1965.

Taxes

Public finance

Education is

The federal government

In 1965,national defense was just as large a general expenditure as Social Security.

Individuals

Payroll taxes are a major financing tool at the federal level.

A government good or service includes

The Constitution of the United States says nothing about state economic activity.

Social insurance has become an increasingly large portion of federal taxes because of the "Baby Boomer" generation.

State and local governments receive the largest amount of revenue from

Why do/should we care that federal expenditures are becoming an increasingly larger portion of GDP?

Local governments rely heavily on property taxes.

Government output is hard to account for because government

Do you think it is correct policy that the federal government is not required to finance all of its expenditures with tax revenues and is allowed to borrow? What are the implications of this policy?

Economists who study the role of government in the market

In 2005,the federal government spent 345.8 billion dollars on income security.

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

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