Question 1

Since 1929, total government taxes as a percentage of GDP:

Accepted Answer

According to data from the Bureau of Economic Analysis, total government taxes as a percentage of GDP have climbed from around 10 percent in 1929 to about 30 percent in recent years.

Question 2

How does total taxes as a percentage of GDP in the United States compare to those of Western European countries, such as the United Kingdom, Germany, and Sweden?

Accepted Answer

The United States generally has a lower total tax burden as a percentage of GDP compared to Western European countries like the United Kingdom, Germany, and Sweden, which tend to have higher taxation levels to support more extensive social welfare programs.

Question 3

Total U.S. government expenditures as a percentage of GDP were largest during which of the following periods of time?

Accepted Answer

During World War II, total U.S. government expenditures reached a peak of 42.7% of GDP in 1944, which is the highest in history. The Great Depression saw high government spending, but not as high as during the war. The Vietnam War and the Energy Crisis both led to increased government spending, but not to the same extent as World War II.

Question 4

Total government spending (federal, state, and local) sums to approximately:

Accepted Answer

Total government spending in the U.S. typically accounts for about one-third of the GDP, encompassing federal, state, and local expenditures.

Question 5

Which of the following is approximately is the current total government expenditures as a percent of GDP in the U.S.?

Accepted Answer

Government expenditures in the U.S. are approximately 35 percent of GDP.

Question 6

Government expenditures as a share of the U.S. economy are:

Accepted Answer

While government expenditures in the US are not the smallest in the world, they are smaller than most Western European countries. The US ranks 36th out of 190 countries in terms of government spending as a percent of GDP according to World Bank data. Countries like France and Germany have higher government expenditures as a percent of their economies.

Question 7

Currently, total government expenditures in the United States have totaled about:

Accepted Answer

According to the latest data from the Bureau of Economic Analysis, total government expenditures in the United States were approximately 33% of GDP in 2020. This includes both federal and state and local government spending. Therefore, the best choice is C) one-third of GDP.

Question 8

Which of the following categories accounted for the lowest percent of the total federal government expenditures in recent years?

Accepted Answer

Interest on the national debt typically accounts for a smaller percentage of federal expenditures compared to other categories like income security, national defense, and education and health.

Question 9

The income security program category for federal government outlays includes spending for:

Accepted Answer

The income security program category includes spending for all of the options listed - Social Security, Medicare, Welfare, and Unemployment Compensation.

Question 10

Which of the following categories accounted for the third largest percentage of total federal government expenditures?

Accepted Answer

Interest on the national debt is the third largest category of federal government expenditures.

Question 11

After 1970, the share of federal spending allocated to national defense:

Accepted Answer

After 1970, the US began to shift its federal spending away from national defense and towards domestic priorities such as income security. This trend continued throughout the 1970s and into the 1980s, with defense spending declining as a share of the federal budget and income security programs like Social Security and Medicare increasing in importance. By the end of the 1980s, defense spending had fallen to around 20% of the federal budget, while income security programs had risen to over 40%. Therefore, option A is the best choice.

Question 12

Which of the following countries had the lowest level of government expenditures as a share of GDP?

Accepted Answer

The United States had the lowest level of government expenditures as a share of GDP among the given countries.

Question 13

Measured as a share of the economy, government expenditures:

Accepted Answer

Government expenditures in the U.S. have increased significantly from less than 10 percent of GDP in 1929 to around 35 percent in recent years.

Question 14

Currently, total government expenditures in the United States:

Accepted Answer

According to the latest figures from the Bureau of Economic Analysis, total government expenditures in the United States were approximately 33% of GDP in 2020.

Question 15

In which of the following countries are taxes (measured as a percentage of GDP) the lowest?

Accepted Answer

The United States has one of the lowest tax rates as a percentage of GDP among developed nations.

Question 16

Currently, _________ represents the largest single category of federal spending?​

Accepted Answer

Income security, which includes Social Security and other welfare programs, represents the largest single category of federal spending.

Question 17

Currently, total private sector expenditures in the United States:

Accepted Answer

The answer of Currently, total private sector expenditures in the...

Question 18

Which of the following countries devote the smallest percentage of its GDP to taxes?

Accepted Answer

The United States devotes the smallest percentage of its GDP to taxes compared to the other countries listed.

Question 19

Since 1970, the composition of federal expenditures has:

Accepted Answer

Since 1970, there has been a notable shift in federal expenditures from national defense to income security programs, reflecting changes in government priorities and social policies.

Question 20

Which of the following categories accounted for the largest percentage of total federal government expenditures in recent years?

Accepted Answer

Income security, which includes Social Security, unemployment benefits, and other welfare programs, has historically accounted for the largest portion of federal government expenditures.

Quiz 16: The Public Sector