Under the U

question 87

Multiple Choice

Under the U.S. system of federalism, the necessary and proper clause applies to

• A) local governments.
• B) state governments.
• C) the national government.
• D) both the national government and the states.

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Definitions:

Producer Surplus

The difference between the amount that producers are willing to accept for a good or service versus what they actually receive.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a product and the actual market price they pay.

Government Revenue

The money received by a government from taxes, fees, fines, intergovernmental grants, and other sources to fund public spending.

Tariff

A tax imposed by a government on goods and services imported from other countries to encourage domestic consumption and protect the local industry.