1. the government must provide some goods and services because? a. they are too expensive for entrepreneurs to provide b. demand for them is greater than supply. c. private producers have no incentive to do so. d. not many people are interested in buying them.

2. how would voters most likely react if political leaders raised taxes by 50%? a. they would not make any changes in their behavior. b. they would demand more public goods and services. c. they would stop voting in elections. d. they would not re-elect the leaders.

3. what is one problem with putting off the costs of policies and public services? a. the national debt will continue to grow. b. voters will not enjoy the benefits of the program. c. politicians will refuse to vote for laws that do this. d. the federal budget will remain balanced.

4. what is the most likely result of incomes not rising as quickly as inflation? a. people are able to buy fewer goods and services. b. the unemployment rate rises as more people look for jobs. c many people decide to leave the labor force. d. consumers buy more goods before inflation raises prices more.