18. Social insurance has become an increasingly large portion of federal taxes because of the “Baby Boomer” generation.
A) True.B) False.C) Uncertain. Ans: a
19. A very small portion of government expenditures is financed by taxes. A) True.B) False.C) Uncertain. Ans: b
20. In 2002, national defense was just as large a general expenditure as Social Security. A) True.B) False.C) Uncertain. Ans: b
21. The Constitution of the United States says nothing about state economic activity. A) True.B) False.C) Uncertain. Ans: b
22. The taxes paid by citizens are directly related to the benefit of government goods and services received.
A) True.B) False.C) Uncertain. Ans: c
23. Interest on the national debt, as a percentage of federal expenditures, has increased significantly since 1965.
A) True.B) False.C) Uncertain. Ans: b
24. Local governments rely heavily on property taxes. A) True.B) False.C) Uncertain. Ans: a
25. Government is designed to handle problems not addressed by the private sector. A) True.
B) False.C) Uncertain.Ans: c
26. Expenditures, as a percentage of GDP for the United States, are not very different than those of other industrialized nations. A) True. B) False. C) Uncertain. Ans: a
27. Payroll taxes are a major financing tool at the federal level. A) True. B) False. C) Uncertain. Ans: a
28. State, local, and federal expenditures amounted to 97% of GDP in 2005. A) True. B) False. C) Uncertain. Ans: b
29. Personal income and Social Security payroll taxes are currently the largest sources of government revenue. A) True.