Question :
31) In the circular flow model with the government sector, : 1241378
31) In the circular flow model with the government sector, taxes
A) flow in the opposite direction as do transfers.
B) flow in the same direction as do transfers.
C) on households flow in the same direction as do the goods and services.
D) on firms flow in the same direction as do factors of production.
E) flow from the goods market to the factor markets.
32) Which of the following is NOT shown explicitly in the circular flow model?
A) the governments’ purchases in the goods market
B) the taxes the governments collect from households
C) the governments’ interaction with firms
D) the legal system
E) the transfers the governments make to households
33) Which of the following is a function of the U.S. federal government?
A) providing the legal and social framework for economic activity
B) distributing private goods and services
C) deciding for whom firms should produce goods and services
D) deciding how much to produce of private goods and services
E) determining what wages firms will pay their workers.
34) Which of the following is NOT a function of the federal government?
A) collecting property taxes
B) making Social Security and welfare payments
C) making transfers to state and local governments
D) providing public goods and services
E) imposing a personal income tax
35) Of the following, the largest single component of U.S. federal government expenditures is spent on
A) interest paid on the national debt.
B) Medicare and Medicaid.
C) national defense.
D) purchases of goods and services for purposes other than national defense.
E) transfers to state and local governments.
36) The largest component of federal government spending is for
A) national defense.
B) Medicare and Medicaid.
C) education.
D) prisons.
E) interest on the national debt.
37) Of the following, the federal government obtains most revenue from
A) excise taxes.
B) sales taxes.
C) corporate income taxes.
D) Social Security taxes.
E) property taxes.
38) The two biggest items of the U.S. federal government revenue that together account for over approximately 80 percent of total federal government revenue are
A) personal income taxes and Social Security taxes.
B) personal income taxes and corporate income taxes.
C) corporate income taxes and Social Security taxes.
D) corporate income taxes and property taxes.
E) personal income taxes and sales taxes.
39) Of the following, the federal government’s largest source of revenue is the
A) sales tax.
B) property tax.
C) corporate income tax.
D) Social Security tax.
E) transfers from state and local governments.
40) Tax revenues are transferred from
A) state governments to the federal government.
B) local governments to state and federal governments.
C) one state government to other state governments.
D) the federal government to state and local governments.
E) the state and local governments to the federal government.
