[TEST BANK] PUBLIC FINANCE IN CANADA 5TH EDITION BY ROSEN, GAYER, SNODDON Multiple Choice 1. Public finance 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. Ans: b 2. A regulatory budget would A) provide an accounting of government regulation. B) be difficult to compute. C) have to be attempted unofficially. D) be all of the above. Ans: d 3. The federal government 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. Ans: a 4. State and local governments receive the largest amount of revenue from A) personal income taxes. B) property taxes. C) sales taxes. D) payroll taxes. Ans: c This study resource was 5. The federal government gets most of its revenue from A) personal income taxes. B) property taxes. C) sales taxes. D) payroll taxes. Ans: a 6. In a pure market economy, A) there is no role for government. B) government intervention might be needed. C) large markets where people meet to buy and sell are required. D) all of the above. Ans: b www.pasinggrades.com 7. A government good or service includes A) bridges. B) parks. C) national defense. D) all of the above. Ans: d 8. Government output is hard to account for because government 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. Ans: d 9. Economists who study the role of government in the market 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. Ans: b 10. Economics A) started as a business application B) can never be defined. C) is the study of unlimited wants but limited resources. D) has no “real world” relevance. Ans: c This study resource was 11. Taxes 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. Ans: d 12. For the government to provide goods and services, citizens A) have to come to an agreement about how much is needed. B) have to agree on a method of financing. C) need to be informed about the opportunity costs. D) must do all of the above. Ans: d 13. Education is 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. Ans: a 14. Politics 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. Ans: d 15. Individuals 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. Ans: e 16. The unified budget is 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 the above. Ans: b This study resource was 17. In 2009, the federal budget was almost A) 1 million pages long. B) 17 pages long. C) 1,300 pages long. D) 500 pages long. Ans: c True/False 18. Social insurance has become an increasingly large portion of federal taxes because of the “Baby Boomer” generation. A) True B) False C) Uncertain Ans: a 19. A very small portion of government expenditures is financed by taxes. A) True B) False C) Uncertain Ans: b 20. In 1965, national defense was just as large a general expenditure as Social Security. A) True B) False C) Uncertain Ans: b 21. The Constitution of the United States says nothing about state economic activity. A) True B) False C) Uncertain Ans: b 22. The taxes paid by citizens are directly related to the benefit of government goods and services received. A) True B) False C) Uncertain Ans: c 23. Interest on the national debt, as a percentage of federal expenditures, has increased significantly since 1965. A) True B) False C) Uncertain Ans: b This study resource was 24. Local governments rely heavily on property taxes. A) True B) False C) Uncertain Ans: a
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QMI1500 Assignment 02 2021 AS PER UPDATED TUTORIAL LETTER...
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