| The following are government activities that are involved in public finance, except | Regulating the activities of firms in the financial sector of the economy |
| The circular flow model would show that government | Provides goods and services to businesses and households and pays for them with net taxes |
| A major distinction between government purchases and government transfer payments is that | Government purchases divert resources from private uses to public uses while transfer payments do not |
| The major sources of funds for the Federal government include the following except | General sales tax |
| The marginal tax rate is the | Increase in taxes as a percentage of an increase in income |
| Which of the following is the largest expenditure items of state governments | Education |
| Which is the most important source of tax revenue for local government | Property taxes |
| The benefits-received principle of taxation is | The basis for the gasoline tax |
| Which of the following taxes is most likely to be regressive | General sales tax |
| Other tunes being equal, the burden of a sales tax on a product will be borne entirely by the producer if | Demand is perfectly elastic |