Chapter 7
The Mode of Finance: Sources of Funds
Test Bank
Multiple Choice Questions
1. Giving for a broad range of health, research, and social concerns is known as which
of the following?
a. charity
b. taxes
c. fees
d. philanthropy
2. Established by law, which of the following are directly accountable to elected officials
and supported by government funds?
a. for-profit organizations
b. capitalist businesses
c. public agencies
d. state services
3. Which of the following kinds of organizations receive the largest amount of donations
and contributions from the general public?
a. religious groups
b. homeless shelters
c. colleges
d. hospitals
4. Which of the following is meant to encourage different kinds of valued activities and
help with basic expenses?
a. tax loopholes
b. tax incentives
c. tax assistance
d. tax expenditures
5. What percentage of U.S. gross domestic product goes to taxes?
a.
51%
b.
44%
c.
33%
d.
28%
6. Which of the following best explains why social welfare workers should pay close
attention to welfare-related taxes?
a. It is the civic and American thing to do.
b. Many welfare programs are funded by taxes.
c. Tax codes and policies are difficult to understand.
d. Many people try to cheat their taxes.
7. Which of the following best summarizes the “dead hand” concept of immunity?
a. The government rarely can interfere with a charity’s allocation of services.
b. The government never can interfere with a charity’s allocation of services.
c. The government can interfere with a charity’s allocation of services, though it
tries to leave all decisions to the charity.
d. The government can interfere with a charity’s allocation of services, and it
usually funnels all funds back to the government.
8. Which of the following best explains why the government offers tax exemptions on
money donated to charities?
a. The government cannot legally tax charitable organizations.
b. Exemptions are a public incentive for private generosity.
c. No one would contribute money to charities otherwise.
d. The government cannot tax money that a person does not have.
9. A county health department is likely to rely on which of the following sources of
money to fund its services?
a. government money and service fees
b. government money and user donations
c. service fees and user donations
d. service fees and endowments
10. A low-level service industry worker has seen an increase in his income since the
1980s. Which of the following percentages most accurately depicts his increase in
income?
a. 4%
b. 28%
c. 54%
d. 129%
1. How do most government welfare services obtain their funds? What kinds of services
benefit from these funds?
2. How do most private welfare services obtain their funds? What kinds of services
benefit from these funds?
3. How do taxing policies affect social welfare services? Apply this to a real-life
scenario.
4. How can private contracts benefit the government? Give two examples that illustrate
this.
5. Why do recipients of Social Security benefits feel a greater sense of entitlement to
the benefits compared to the recipients of other programs?
6. Describe a welfare service that can be used by all but that caters specifically to those
who fall below the tax threshold. How does this service ensure that the people who
need it the most are benefiting from it?
Essay Questions
1. Weigh the benefits and faults with the U.S. Social Security program. Is the program
set up for longevity, or did it suit an immediate need for government funding?
2. Why would most large-sum donors reduce their charitable contributions if tax
exemptions were abolished? Use this to analyze the American spirit of charity and
volunteerism.
3. Briefly create and describe a new government welfare service. Then create a new tax
policy that regenerates the money used by the welfare service. Will your new service
and policy benefit the public as a whole? Which groups will benefit the most? Which
groups will oppose the service and policy?
4. Compare the conservative and liberal ideologies behind volunteering. Which one
actually works in the United States? Create your argument and defend it with
examples.