SOL CE.13b How and why the government collects taxes

Why does the government provide certain goods and services?

• Because businesses can provide them more cheaply
• Because individuals and businesses cannot provide them efficiently
• Because they are easy to produce
• Because they benefit only a few people

Which of these is an example of a good or service that the government provides?

• Fast food
• Private health insurance
• Public schools
• Clothing

How does the government pay for goods and services like public schools and highways?

• By charging businesses directly
• By using tax revenue and borrowed funds
• By selling goods to other countries
• By asking individuals to donate

Which of the following is an example of a public good?

• A restaurant
• A public park
• A private school
• A shopping mall

What is a key characteristic of government-provided goods and services?

• They are available only to rich people
• They provide benefits to many people at once
• They are sold for a profit
• They are only available on certain days

Why can’t private businesses provide national defense?

• Because they do not have enough workers
• Because it would not be profitable
• Because it is not needed
• Because it is too easy to organize

What does the government collect from people to fund public services like schools and highways?

• Donations
• Taxes
• Products
• Loans

How does the government help fund national defense?

• By selling bonds to businesses
• By collecting taxes from individuals and businesses
• By receiving donations from other countries
• By collecting fines from people

Which of these is a way that the government pays for public goods?

• By charging fees to businesses only
• By using tax revenue, borrowed funds, and fines
• By asking wealthy individuals for contributions
• By taxing products that people buy

What happens when people do not follow the rules for using public services like parks?

• They receive a free pass
• They may have to pay a fine
• They are given a reward
• They are allowed to use services for free