Deck 4: Government in Canada

Question 1

A federalist system of government means that:

A) only one level of government, the federal government, is necessary.
B) the federal government can override decisions made by the provincial government.
C) two levels of government-federal and provincial-have jurisdiction over each citizen.
D) all power rests with a central, or federal, government.

Answer 1

two levels of government-federal and provincial-have jurisdiction over each citizen.

Question 2

Under the Constitution Act (1867), which of the following responsibilities was not given to the federal government?

A) currency and coinage
B) navigation and shipping
C) hospitals
D) weights and measures

Answer 2

hospitals

Question 3

Under the Constitution Act (1867), which of the following responsibilities was not given to the provincial governments?

A) licensing of businesses
B) education
C) hospitals
D) banking

Answer 3

banking

Question 4

Which of the following statements about the Canadian government is true?

A) the governor general represents the Senate
B) members of the House of Commons are appointed by the political party with majority seats
C) the constitutional head of the government is the Queen
D) the Canadian government is referred to as unicameral

Question 5

Which of the following statements about the Canadian Government is true?

A) the Lieutenant-Governor represents the Queen in each province
B) the governor general represents the Senate
C) it is referred to as unicameral
D) members of the House of Commons are appointed by the political party with majority seats

Question 6

Which of the following statements is true?

A) local governments are not mentioned in the Constitution
B) the governor general represents the Senate
C) it is referred to as unicameral
D) members of the House of Commons are appointed by the political party with majority seats

Question 7

Which of the Canadian provinces has the highest public-sector employment?

A) Ontario
B) Quebec
C) British Columbia
D) Alberta

Question 8

The largest percentage of federal government expenditure goes to:

A) debt charges.
B) social services.
C) health.
D) education.

Question 9

Which of the following programs does not fall into the category of social-services spending?

A) old-age security payments
B) Canada Assistance Plan
C) oil compensation program
D) unemployment insurance

Question 10

Federal government expenditures in recent years:

A) have been greater than some but not all provinces.
B) have been greater than the expenditures of all the provinces combined.
C) have been greater than an individual Province's expenditures but not greater than that of all the provinces.
D) have been less than expenditures by each province.

Question 11

The percentage of federal government expenditure that is allocated to social services is approximately:

A) 5 percent.
B) 10 percent.
C) 20 percent.
D) 36 percent.

Question 12

The largest percentage of provincial government expenditure goes to:

A) debt charges.
B) health.
C) education.
D) social welfare.

Question 13

The smallest percentage of provincial government expenditure goes to:

A) transfers to local governments.
B) transportation.
C) resource conservation.
D) protection.

Question 14

Approximately what percentage of provincial government expenditure goes to health care?

A) 8 percent
B) 16 percent
C) 24 percent
D) 34 percent

Question 15

Wagner's law of increasing state activity postulated that government expenditures would grow at a faster rate than the output of goods and services in industrialized countries. Wagner gave three reasons for his theory. Which of the following is not one of Wagner's reasons?

A) as the population increased, the productivity of each worker would decline
B) as national incomes increased, more money would be allocated to welfare expenditures
C) government would be needed to finance large capital projects
D) more money would be spent on law and order because of greater urbanization

Question 16

Wagner's law of increasing state activity postulated that government expenditures would grow at a faster rate than the output of goods and services in industrialized countries. Wagner gave three reasons for his theory. Which of the following is one of Wagner's reasons?

A) government would be needed to finance large capital projects
B) as incomes increase so do tax revenues, as a result government expenditures also increase
C) the political process itself increases the reluctance to reduce or eliminate programs
D) more money would be spent on law and order because of greater urbanization

Question 17

Which of the following best describes the Peacock-Wiseman hypothesis regarding the increase in government expenditure?

A) productivity improvements in Canada have lagged behind improvements in other countries
B) inflation has provided the government with more tax revenue
C) more government spending on law and order is necessary because of increased urbanization
D) military conflicts have raised what the taxpayers consider to be an acceptable level of taxation

Question 18

The major area of expenditure for municipal government is:

A) roads.
B) health care.
C) education.
D) parks.

Question 19

The smallest portion of expenditure for municipal government is goes to:

A) health care.
B) education.
C) roads.
D) parks.

Question 20

The country that has the highest expenditure on social security is:

A) Austria
B) Sweden
C) Finland
D) Canada

Question 21

Which of the following statements regarding the responsibility for taxation in Canada is true?

A) both the federal government and the provincial governments can levy indirect taxes
B) only the provincial governments can levy indirect taxes
C) only the federal government can levy indirect taxes
D) only the provincial governments can levy direct taxes

Question 22

The major source of tax revenue for the federal government is:

A) sales and excise taxes.
B) property taxes.
C) corporation income taxes.
D) personal income taxes.

Question 23

The second major source of tax revenue for the provincial government is:

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

Question 24

The major source of tax revenue for the provincial government is:

A) sales taxes.
B) corporation income taxes.
C) property taxes.
D) consumption taxes.

Question 25

The second major source of tax revenue for the municipal government is:

A) corporation income taxes.
B) sales taxes.
C) personal income taxes.
D) transfers from other governments.

Question 26

Which of the Canadian provinces has the highest provincial sales tax?

A) British Columbia
B) Newfoundland and Labrador
C) Prince Edward Island
D) Quebec

Question 27

The percentage of federal government revenue that can be attributed to personal income tax is Approximately:

A) 55 percent.
B) 40 percent.
C) 30 percent.
D) 45 percent.

Question 28

At the time of Confederation the majority of government revenue came from:

A) property taxes.
B) personal income taxes.
C) corporation income taxes.
D) excise taxes and customs duties.

Question 29

Which of the following taxes is not associated with the federal government?

A) customs duties
B) excise taxes
C) property taxes
D) GST

Question 30

The following tax is the best example of a benefits-received approach to taxation:

A) property tax.
B) gasoline tax.
C) sales tax.
D) income tax.

Question 31

The imposition of a government tax:

A) has a minor impact on spending and unemployment.
B) can influence economic objective of other countries.
C) need not be consistent with economic development.
D) can influence the allocation of resources.

Question 32

Marginal tax rates are defined as:

A) the average tax increase in relation to income.
B) the highest tax bracket under a progressive income-tax system.
C) the increase in taxes from year to year.
D) the percentage of any increase in income paid in taxes.

Question 33

Indexing refers to:

A) calculating the percentage change in retail prices.
B) determining whether wages have increased faster than prices.
C) assessing excise taxes on a percentage basis.
D) adjusting the personal income tax for inflation.

Question 34

As your income increases, marginal tax rates under a progressive income-tax system:

A) may remain constant, or may increase, depending on your income-tax bracket.
B) increase.
C) decrease.
D) remain constant.

Question 35

If you pay $1000 tax on $10 000 income and $1250 tax on $15 000 income, the tax structure is Described as:

A) regressive.
B) progressive.
C) marginal.
D) proportional.

Question 36

As your income increases, marginal tax rates under a proportional tax system:

A) increase.
B) decrease
C) either increase or remain constant depending on your tax bracket
D) remain constant.

Question 37

If you pay $1000 tax on $10 000 income and $2000 tax on $20 000 income, the tax structure is Described as:

A) marginal.
B) progressive.
C) proportional.
D) regressive.

Question 38

The ability-to-pay approach to taxation has problems because:

A) some individuals have no ability to pay.
B) the government does not have a wide variety of taxes that they can impose on the public.
C) it is unclear which is the best measure of ability to pay.
D) the government is unable to measure all income earned by individuals.

Question 39

The benefits-received approach to taxation is difficult to implement because:

A) the government does not have a wide variety of taxes that they can impose on the public.
B) the benefits from various government programs are difficult to measure.
C) people who have to pay for services try not to use them.
D) some government programs have no benefits.

Question 40

Income tax and property tax are both:

A) indirect taxes.
B) direct taxes.
C) proportional taxes.
D) regressive taxes.

Question 41

Excise taxes are:

A) progressive taxes.
B) regressive taxes.
C) indirect taxes.
D) direct taxes.

Question 42

Equalization payments:

A) are made under Established Program Financing.
B) are paid by the federal government to all provinces.
C) ensure that provincial revenues do not decline substantially from year to year.
D) are a recognition that provinces vary in their ability to collect taxes.

Question 43

Stabilization payments:

A) are paid by the federal government to all provinces.
B) ensure that provincial revenues do not decline substantially from year to year.
C) are made under Established Program Financing.
D) are a recognition that provinces vary in their ability to collect taxes.

Question 44

Which of the following provinces received the lowest proportion of its revenue from federal government transfers in 2005-2006?

A) Alberta
B) Quebec
C) Ontario
D) British Columbia

Question 45

Which of the following provinces received the highest proportion of its revenue from federal government transfers in 2005-2006?

A) Ontario
B) New Foundland and Labrador
C) Quebec
D) Alberta

Question 46

Net debt refers to gross public debt minus:

A) liabilities to other countries.
B) recorded assets.
C) liabilities to banks.
D) interest payments.

Question 47

Canada's net debt as a percentage of GDP was highest in:

A) 1975.
B) 1981.
C) 1996.
D) 2004.

Question 48

Canada's net debt as a percentage of GDP was smallest in:

A) 1975.
B) 1981.
C) 1996.
D) 2004.