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

Accepted Answer

At the turn of the 20th century, local governments were responsible for the majority of public spending, primarily due to their role in providing essential services such as education, infrastructure, and public safety.

Question 2

What percentage of U.S. GDP is all government expenditures today?
A) 10%
B) 19%
C) 24%
D) 33%

Accepted Answer

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.

Accepted Answer

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.

Accepted Answer

All of these industries are significantly affected by changes in government expenditures, as they often rely on government contracts and funding.

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.

Accepted Answer

The tax deduction for mortgage interest significantly impacts the housing industry by encouraging homeownership, often more so than direct federal expenditures on 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.

Accepted Answer

The mortgage interest deduction primarily benefits those who itemize deductions, which are typically higher-income households, as they are more likely to own homes and have larger 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.

Accepted Answer

The growth of entitlement programs such as Social Security, Medicare, and Medicaid has significantly contributed to the increase in federal spending due to their expanding beneficiary base and rising healthcare costs.

Question 8

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

Accepted Answer

The answer of Taxes collected at the federal level but...

Question 9

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

Accepted Answer

The answer of Corporate income taxes account for about 15%...

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.

Accepted Answer

States and local governments rely significantly on intergovernmental transfers, with states receiving a substantial portion of their revenue from the federal government and local governments receiving a significant share from both state and federal sources.

Question 11

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

Accepted Answer

Education is typically the largest category of local government spending, as it includes funding for public schools, teacher salaries, and educational infrastructure.

Question 12

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

Accepted Answer

The answer of What is the primary local source of...

Question 13

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

Accepted Answer

The answer of What is the major source of revenue...

Question 14

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

Accepted Answer

The answer of Describe two of the three main reasons...

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.

Accepted Answer

The answer of Not everything that involves government necessarily means...

Question 16

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

Accepted Answer

The answer of What are some examples of today's government...

Question 17

What are nonexhaustive expenditures? Provide an example.

Accepted Answer

The answer of 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?

Accepted Answer

The answer of What are the two most common ways...

Question 19

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

Accepted Answer

The answer of What are the three categories of federal...

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.

Accepted Answer

The answer of Briefly describe the relative sizes of the...

Quiz 2: The Public Sector in Perspective

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

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

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

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