Big Questions for Chapter 8:

How do decisions about social programs and taxation

in Canada and the U.S. attempt to meet the needs of
citizens?
What values shape the economic policies of political
parties on social programs and taxation?
What are social programs?
Whats the connection between taxation and social
programs?
What do taxes pay for in Canada?
What is a taxation model?
How does paying or not paying taxes affect social
programs and quality of life?
Whats a political platform?
Whats the connection between values, policies, and
the economic continuum?
What are some examples of political parties and their
economic policies connected to social programs?

Terms to know:
social programs
public health care
private health care
profit
health insurance
income tax
sales taxes
Goods and Services Tax (GST)
median
taxation model

tax evasion
tax base
underground economy
black market

Chapter 8 taxation
1. See source 1 to help with the following question.
Which speakers would feel most comfortable living in an economy like Canada's?
A) George and Ned
B) George and Nancy
C) Bess and Nancy
D) Bess and Ned
2. See source 2 to help with the following question.
Which of the speakers could be most accurately described as being are
stronger supporter of a market style economy over a mixed economy?
A) #1
B) #2
C) #3
D) #4
3. The number and type of social programs a country has is determined by the:
A) per capita GDP (Gross Domestic Product).
B) collective quality of life of the nation's citizens.
C) values of society.
D) size of the population.

4. Which of the following diagrams best illustrates the impact on the tax base and
funding for government services when people participate in tax evasion?
A)

B)

C)

D)

5. Use Source 3 to answer the following.

The list shown is some of the factors that influence__________ in Canada
and whose needs and wants must be considered when attempting to resolve
problems.
A) the tax base.
B) the black market.
C) environmental issues.
D) social programs.
6. The willingness of citizens of the United States to enter into financial
contracts with lenders that legally bound them to pay for houses and goods that
they really could not afford was based on the practice of:
A) tax evasion.
B) capitalism.
C) above prime mortgages.
D) consumerism.
7. Use source 4 to answer the following.
By examining Demokratia's new proposed income tax structure, it could be
inferred that the ruling political party most likely has an economic platform
based on all of the following with the exception of:
A) the public good is served by the government ensuring the well-being of
individuals.
B) individuals are responsible for their own well-being.
C) a mixed style economy.
D) the public good comes from both individualism and cooperation.

8. Use source 5 to help answer the following.

Which of the speakers could be most accurately described as being more left
from a market style economy on the economic continuum than the other
speakers?
A) #1
B) #2
C) #3
D) #4

9. Use source 6 to answer the following.

A political party which wanted to raise levels of taxation or implement new

sales taxes to fund the above programs and services would best be
described as having a political and economic platform the following values
with the exception of:
A) society must cooperate to assist those in need in order to serve the
public good.
B) the government should play a role in the economy.
C) all individuals are responsible for their own wellbeing.
D) no one should live in poverty.
10. The Canadian government uses "Equalization Payments" to redistribute
wealth evenly between "have" and "have-not" provinces. What is the social
equivalent of this program?
A) Taxation of gasoline.
B) Subsidized education.
C) Charging monthly health care premiums.
D) Welfare and unemployment insurance.