Question 1

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

Accepted Answer

We should care that federal expenditures are becoming an increasingly larger portion of GDP because of public sector crowding out.

Question 2

The taxes paid by citizens are directly related to the benefit of government goods and services received.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain C

Question 3

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. A

Question 4

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

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 5

The federal government gets most of its 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 6

Government is designed to handle problems not addressed by the private sector.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 7

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

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 8

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 9

The unified budget is

Accepted Answer

A)  a budget that includes all nations. 
B)  a document which itemizes all the federal government's expenditures and revenues. 
C)  a document that accounts for all spending by states. 
D)  none of these answer options are correct. 
A)  a budget that includes all nations. 
B)  a document which itemizes all the federal government's expenditures and revenues. 
C)  a document that accounts for all spending by states. 
D)  none of these answer options are correct.

Question 10

Personal income and Social Security payroll taxes are currently the largest sources of government revenue.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 11

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)  all of these answer options are correct. 
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)  all of these answer options are correct.

Question 12

In 2012 the federal budget was almost

Accepted Answer

A)  1 million pages long. 
B)  17 pages long. 
C)  1,300 pages long. 
D)  500 pages long. 
A)  1 million pages long. 
B)  17 pages long. 
C)  1,300 pages long. 
D)  500 pages long.

Question 13

Local governments rely heavily on property taxes.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 14

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 15

In 2011 the federal government spent 345.8 billion dollars on income security.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 16

A government good or service includes

Accepted Answer

A)  bridges. 
B)  parks. 
C)  national defense. 
D)  all of these answer options are correct. 
A)  bridges. 
B)  parks. 
C)  national defense. 
D)  all of these answer options are correct.

Question 17

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 18

Interest on the national debt,as a percentage of federal expenditures,has increased significantly since 1965.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 19

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

Question 20

A regulatory budget would

Accepted Answer

A)  provide an accounting of government regulation. 
B)  be difficult to compute. 
C)  have to be attempted unofficially. 
D)  all of these answer options are correct. 
A)  provide an accounting of government regulation. 
B)  be difficult to compute. 
C)  have to be attempted unofficially. 
D)  all of these answer options are correct.

Exam 1: Introduction

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

The taxes paid by citizens are directly related to the benefit of government goods and services received.

Education is

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

The federal government gets most of its revenue from

Government is designed to handle problems not addressed by the private sector.

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

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?

The unified budget is

Personal income and Social Security payroll taxes are currently the largest sources of government revenue.

Taxes

In 2012 the federal budget was almost

Local governments rely heavily on property taxes.

Government output is hard to account for because government

In 2011 the federal government spent 345.8 billion dollars on income security.

A government good or service includes

State and local governments receive the largest amount of revenue from

Interest on the national debt,as a percentage of federal expenditures,has increased significantly since 1965.

The federal government

A regulatory budget would

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

Filters