Question 1

In 2009, federal spending on protection of persons and property (which includes national defence)was larger than federal spending on health.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain A

Question 2

Why do/should we care that total government expenditures are becoming an increasingly smaller portion of GDP?

Accepted Answer

We should care that government expenditures are becoming an increasingly smaller portion of GDP because it may reflect a decline in the effectiveness and impact of government programs.

Question 3

are exclusively the domain of provincial and local governments, and the federal government does not receive any revenue from this source.

Accepted Answer

A) Sales taxes 
B) Property taxes 
C) Payroll taxes 
D) Personal income taxes 
A) Sales taxes 
B) Property taxes 
C) Payroll taxes 
D) Personal income taxes B

Question 4

Over time, the economic role of government has

Accepted Answer

A) remained constant. 
B) been too small to matter. 
C) grown tremendously. 
D) declined significantly. 
A) remained constant. 
B) been too small to matter. 
C) grown tremendously. 
D) declined significantly.

Question 5

The federal government is required to finance all its expenditures by taxation.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 6

About 25 percent of federal spending are transfers to provincial, territorial, and local governments.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 7

Ideology is by itself to determine whether any particular economic intervention should be undertaken.

Accepted Answer

A) insufficient 
B) sufficient 
C) irrelevant 
D) all that is needed 
A) insufficient 
B) sufficient 
C) irrelevant 
D) all that is needed

Question 8

One approach to measure the size of government is the volume of its annual expenditures.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 9

The provincial role in public finance in Canada has grown significantly relative to that of the federal government.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 10

Discuss your views on government intervention regarding tobacco consumption.

Accepted Answer

As with many social issues, tobacco cons

Question 11

In 2009, provincial and local governments received the largest amount of revenue from

Accepted Answer

A) sales taxes. 
B) payroll taxes. 
C) personal income taxes. 
D) property taxes. 
A) sales taxes. 
B) payroll taxes. 
C) personal income taxes. 
D) property taxes.

Question 12

Key areas of provincial responsibility include

Accepted Answer

A) health. 
B) welfare. 
C) education. 
D) all of these answers are correct. 
A) health. 
B) welfare. 
C) education. 
D) all of these answers are correct.

Question 13

Write an essay discussing some of the reasons that government expenditures for health care are increasing.

Accepted Answer

Government expenditures for he

Question 14

Complications in the computation of government expenditures arise because

Accepted Answer

A) government provides goods that have no resale value. 
B) secrets are kept about what is spent. 
C) government is so large. 
D) accounting decisions affect the outcome. 
A) government provides goods that have no resale value. 
B) secrets are kept about what is spent. 
C) government is so large. 
D) accounting decisions affect the outcome.

Question 15

If the size of government triples but at the same time the economy doubles, then the relative size of government has

Accepted Answer

A) no relevance. 
B) shrunk. 
C) remained constant. 
D) grown. 
A) no relevance. 
B) shrunk. 
C) remained constant. 
D) grown.

Question 16

The federal budget is presented outlining anticipated changes in tax and spending.

Accepted Answer

A) several times throughout the year 
B) every 4 years with the election of a new government 
C) every time there is a tax change 
D) each year 
A) several times throughout the year 
B) every 4 years with the election of a new government 
C) every time there is a tax change 
D) each year

Question 17

Hidden costs to government include

Accepted Answer

A) tax expenditures. 
B) accounting costs. 
C) direct expenditures. 
D) none of these answers is correct. 
A) tax expenditures. 
B) accounting costs. 
C) direct expenditures. 
D) none of these answers is correct.

Question 18

Do you think it is correct policy that the federal government is not required to finance all of its expenditures with tax revenues and is allowed to borrow? What are the implications of this policy?

Accepted Answer

Answers will vary, but financing out of

Question 19

Education is

Accepted Answer

A) too expensive for the federal government. 
B) financed on a voluntary basis. 
C) generally financed at the provincial and local level. 
D) generally financed at the federal level. 
A) too expensive for the federal government. 
B) financed on a voluntary basis. 
C) generally financed at the provincial and local level. 
D) generally financed at the federal level.

Question 20

Inflation increases the real value of debt.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Exam 1: Introduction to Public Finance in Canada

In 2009, federal spending on protection of persons and property (which includes national defence)was larger than federal spending on health.

Why do/should we care that total government expenditures are becoming an increasingly smaller portion of GDP?

are exclusively the domain of provincial and local governments, and the federal government does not receive any revenue from this source.

Over time, the economic role of government has

The federal government is required to finance all its expenditures by taxation.

About 25 percent of federal spending are transfers to provincial, territorial, and local governments.

Ideology is by itself to determine whether any particular economic intervention should be undertaken.

One approach to measure the size of government is the volume of its annual expenditures.

The provincial role in public finance in Canada has grown significantly relative to that of the federal government.

Discuss your views on government intervention regarding tobacco consumption.

In 2009, provincial and local governments received the largest amount of revenue from

Key areas of provincial responsibility include

Write an essay discussing some of the reasons that government expenditures for health care are increasing.

Complications in the computation of government expenditures arise because

If the size of government triples but at the same time the economy doubles, then the relative size of government has

The federal budget is presented outlining anticipated changes in tax and spending.

Hidden costs to government include

Do you think it is correct policy that the federal government is not required to finance all of its expenditures with tax revenues and is allowed to borrow? What are the implications of this policy?

Education is

Inflation increases the real value of debt.

Fundamentals of Welfare Economics

Cost-Benefit Analysis

Public Goods

Externalities

Income Redistribution

Public Choice

Fiscal Federalism

Health Care

Employment Insurance

Public Pensions

Social Welfare Programs

Education

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behaviour

Consumption Taxation

Taxes on Wealth and Property

The Corporation Tax

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