PracTest_Rosen9_Ch1-7 - Chapter 1 Introduction...

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Chapter 1 Introduction 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) loans from other states. E) payroll taxes. Ans: c 5. The federal government gets most of its revenue from A) personal income taxes. B) property taxes. C) sales taxes. D) loans from states. E) payroll taxes. Ans: a 1
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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 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) is all about making money. B) has nothing to do with money. C) is the study of unlimited wants but limited resources. D) has no “real world” relevance. Ans: c 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
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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)
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PracTest_Rosen9_Ch1-7 - Chapter 1 Introduction...

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