Deck 2: The Public Sector in Perspective

Question 1

At the turn of the 20^th century, which level of government was spending the most?

A) County governments
B) State governments
C) Local governments
D) The federal government

Answer 1

C

Question 2

What percentage of U.S. GDP is all government expenditures today?

A) 10%
B) 19%
C) 24%
D) 33%

Answer 2

D

Question 3

In what private business/industry group are the distinctions between the public and private sectors most blurred?

A) The defense industry
B) Highway construction
C) Education
D) All of these are correct.

Answer 3

A

Question 4

What private business/industry group feels the most significant effects of increases and cuts in government expenditures?

A) The defense industry
B) Highway construction
C) Education
D) All of these are correct.

Question 5

The federal government's choice not to tax interest paid on home mortgages has far less effect on the housing industry than total federal expenditures for public housing and redevelopment.

Question 6

Middle- and upper-income households benefit far more than lower-income households from the federal government's choice not to tax interest paid on home mortgages.

Question 7

The single biggest reason for the continued increases in federal spending since the 1960s has been the growth of large entitlement programs like Social Security, Medicare, and Medicaid.

Question 8

Taxes collected at the federal level but spent at the state level are counted as state spending.

Question 9

Corporate income taxes account for about 15% of the revenue collected by the federal government.

Question 10

States receive more than one-quarter of their revenue from the federal government, and local governments receive about one-third of their revenue from state and federal transfers.

Question 11

Education spending is by far the largest category of local expenditures.

Question 12

What is the primary local source of revenue used to fund public schools?

Question 13

What is the major source of revenue for the federal government?

Question 14

Describe two of the three main reasons or theories that describe why government always seems to grow over time.

Question 15

Not everything that involves government necessarily means growth in the government budget. Give some examples of governmental activities that do not necessarily mean large public expenditures, but are significant to the private sector and to society as a whole.

Question 16

What are some examples of today's government taxing and spending policies that can have significant effects on future generations?

Question 17

What are nonexhaustive expenditures? Provide an example.

Question 18

What are the two most common ways to measure the size and growth of government over time?

Question 19

What are the three categories of federal spending, and what percentage of total spending does each represent?

Question 20

Briefly describe the relative sizes of the private and public sectors in the United states; the historical growth of local, state, and federal governments and the reasons for that growth; and the purposes of government expenditures with the sources of revenue used by these three main levels of government.