Social Studies Praxis Practice Test

Which type of power best describes the arrangement where both federal and state governments can borrow money in the United States?

1. Concurrent powers

2. Implied powers

3. Expressed powers

4. Reserved powers

The correct answer is: Concurrent powers

The arrangement where both federal and state governments can borrow money in the United States is appropriately described as concurrent powers. Concurrent powers are those that are shared by both levels of government, allowing them to operate simultaneously in certain areas. This means that both the federal government and state governments have the authority to take on debt, which facilitates their ability to fund projects, manage operations, and respond to economic conditions. This principle reflects the federal structure of the United States, where powers and responsibilities are divided between national and state governments, yet certain powers overlap and can be exercised by both. Understanding concurrent powers is essential for grasping the dynamics of federalism in the U.S., as it illustrates how different levels of government can cooperate and function in areas like taxation, law enforcement, and borrowing. The other types of powers have specific definitions that do not apply in this context: expressed powers are those explicitly listed in the Constitution for the federal government, implied powers are those derived from the necessary and proper clause allowing the government to carry out its duties, and reserved powers are those that are saved for the states under the Tenth Amendment. All these categories highlight aspects of governmental power distribution, but only concurrent powers accurately describe the co-active ability to borrow money at different government levels.