Review for Economics Government and Taxes Quiz

Which of the following is a government program that helps with health care costs for the elderly?

• Medicare
• Social Security
• Medicaid
• Welfare

Which of the following is a long-term concern of the US government due to the national debt?

• An aging population

• interest payments on debt

• higher interest rates

• all of the choices

What is a good provided by the government because it is socially desirable?

• Common good
• Public good
• merit good

• Private good

A good provided by the government that can be used by everyone.

• Exclusive good
• Private good
• Common good
• Public good

What is usually the largest component of most STATE budgets?

• Healthcare spending
• Education spending
• Infrastructure spending
• parks and libraries

Which of the following is true of the United States budget?

• Over the last 40+ years mandatory spending has increased

• we have an aging population increasing Social Security and Medicare payments

• Over the last 40+ years money available discretionary spending has decreased

• all of the choices

Which of the following describes the national debt?

• the annual budget deficit

• the total borrowing of the federal government over the years

• the sum of all mortgage payments held by US citizens

• the amount of credit card debt American citizens have

What type of spending makes up the largest component of the FEDERAL​ government's budget? ​ (a)  

• Social Security and Medicare
• Defense and military spending
• Education and healthcare funding

Which economist was the first two advocate for the use of government taxation and spending in the U.S.

• Karl Marx

• Adam Smith

• David Ricardo

• John Maynard Keynes

How does the federal government regulate the economy?

• Protecting consumers from business fraud

• using anti-trust laws to keep markets competitive

• protecting citizen's health and the environment

• all of these choices