Budgeting and Taxes

What is the purpose of the government?

• Protect individual rights
• Promote a stable economy
• Promote the well-being of Americans
• all of the above

Congress recently passed a(n) _______ that will fund our government until September 30th.

• Continuous resolution
• appropriations bill
• stop-gap funding measure
• nothing was passed to fund the government

The budget process, (President crafting and then submitting to Congress for review) is an example of which constitutional principle?

• limited government
• checks and balances
• federalism 
• popular sovereignty 

Which of the following is not a public good?

• Toledo Zoo
• Whitmer High School
• Buckeye Cable
• Toledo Metroparks

Which fiscal policy would the federal government most likely institute if the economy was entering a downturn or recession?

• Decrease taxes on individuals
• Cut government spending
• Increase taxes on individuals
• Raise interest rates

The Constitution gave Congress the power to lay and collect taxes.  Besides Congress, each state and local government shares this power of the government to collect taxes.  This is an example of a(n)

• Implied Power
• Expressed Power
• Concurrent Power
• Reserved Power

A problem with public goods could be

• People have to pay for it no matter if they use it or not.
• Private companies can usually provide the good for a lot cheaper cost.
• People who do not pay/refuse to pay can still enjoy that good/service.
• Both A & C could be a problem.

What is the primary action taken by the federal government when inflation is widespread in the American economy?

• Raising taxes on foreign governments
• Closing all state banks
• Lowering tariff rates (taxes) on imports
• Raising interest rates and/or taxes

Under the President’s role as _____, the President develops a budget and submits it to Congress.

• Chief of state
• Chief legislator
• Chief citizen
• Chief administrator

The government borrows money for which of the following reasons?

• To engage in deficit spending
• To meet the cost of short/long term crisis
• Finance large scale projects
• All of the above