Verified Test Bank Federalism Chapter.3

CHAPTER 3

Federalism

Multiple Choice Questions

1. Which of the following statements about Canadian federalism is false?
   1. there is a hierarchy of power, with provinces subordinate to the federal government
   2. the division of powers is entrenched in sections 91 and 92 of the Constitution Act, 1867
   3. Canada borrowed the federal principle from the Haudenosaunee and United States
   4. Canada is one of the most decentralized federations in the world
2. What is the process of transferring powers from a central government to regional or local governments that remain under its constitutional purview?
   1. devolution
   2. confederation
   3. division of the Crown
   4. centralization
3. A political system featuring a central government that chooses what powers to grant to regional bodies is known as what type of system?
   1. bicameral
   2. unitary
   3. binary
   4. federation

1. What is the power to exercise authority over a polity within a defined geographical area?
   1. the rule of law
   2. residual powers
   3. treaty federalism
   4. sovereignty
2. Which of the following was a driving factor contributing to the establishment of federalism in Canada?
   1. military threat from the United States
   2. shifting trade arrangements with the United States and Britain
   3. deadlock in the United Canadian legislature
   4. All of the above
3. The Crown is divided in Canada, meaning:
   1. English Canada has the Queen as its monarch, while Quebec does not
   2. sovereignty is divided between equal orders of government
   3. there is a dispute over who is next in line to the throne
   4. the monarch is represented by the prime minister at the federal level and premiers at the provincial level
4. Which of the following are not examples of areas of federal jurisdiction?
   1. census and taxation
   2. marriage and divorce
   3. any mode of taxation
   4. education
5. Which of the following is a distinguishing feature of Canadian federalism today?
   1. it operates within a republic
   2. it operates within a constitutional monarchy
   3. it is among the world’s most centralized federations
   4. none of the above
6. What is the sovereignty of the provinces in Canada conferred by?
   1. The British government
   2. The Crown
   3. The federal government
   4. The Supreme Court
7. The constitution defines areas of concurrent or shared jurisdiction. What are these?
   1. Treaties and postal service
   2. Agriculture and immigration
   3. Fisheries and natural resources
   4. Direct taxation and administration of justice
8. Section 56 of the BNA Act gave the federal government the power of disallowance. What does this mean?
   1. it could veto provincial legislation and cause its termination
   2. it could remove all revenue generating capacity from any provincial government
   3. it could remove a sitting premier without cause
   4. None of the above
9. Canada is among the world’s ________ federations.
   1. least centralized
   2. most symmetrical
   3. newest
   4. most vertical
10. Section 55 of the BNA Act outlines the power of reservation, which refers to the ability of:
    1. provincial governments to prevent the federal government from spending in areas of provincial jurisdiction
    2. the federal government to confine First Nations people to specific tracts of land
    3. the federal government to delay the passage of provincial legislation
    4. the Supreme Court to decide which order of government is responsible for specific matters
11. Which of the following objectives did the Fathers of Confederation have in mind when they designed Canada’s system of federalism in 1867?
    1. To ensure that the federal government, and not the provinces, were the primary decision-makers in the Canadian political system.
    2. To ensure that the provinces held more decision-making power and authority than the federal government.
    3. To ensure there was room to integrate a third order of government for Indigenous peoples.
    4. To make sure that the federal government and the provinces held equal political decision-making power.

1. What does federal spending power refer to?
   1. The power of the federal government to run a budget deficit.
   2. The ability of the federal government to borrow money from the provinces.
   3. The capacity of the federal government to spend its available funds, even on matters that fall outside its constitutional jurisdiction.
   4. The authority of the federal government to spend only on matters that fall within its constitutional jurisdiction.
2. What is a model of federalism in which federal and provincial governments operate independently of each other in their own respective jurisdictions?
   1. Intra-state federalism
   2. Classical federalism
   3. Modern federalism
   4. Fiscal federalism
3. Collaborative federalism is a model of federalism in which ________ governments take the lead in addressing common public policy problems together.
   1. federal
   2. municipal
   3. foreign
   4. provincial
4. Which organization was formed in 2003 with the objective of supporting regular meetings among provincial and territorial heads of government?
   1. Council of the Federation
   2. National Governors’ Association
   3. The First Minister’s Conference
   4. The Assembly of First Nations
5. Symmetrical federalism refers to a model of federalism in which ________.
   1. municipal governments are entitled to the same powers as the provincial government
   2. provincial governments are entitled to powers equal to those of the federal government
   3. the powers granted to one province must be available to all provinces
   4. the powers granted to a municipality in one province must be available to all municipalities in Canada
6. That Quebec is granted unprecedented jurisdiction over immigration is an example of which type of federalism?
   1. Asymmetrical
   2. Co-operative
   3. Collaborative
   4. Symmetrical
7. Which model of federalism recognizes the equal-order relationship between the First Nations people and the Crown?
   1. Three-row federalism
   2. Treaty federalism
   3. Third-way federalism
   4. Asymmetrical federalism
8. Section 91 of the Constitution Act, 1867, begins by stating that the Crown may do which of the following?
   1. Make laws for the peace, order, and good government of Canada
   2. Make laws to ensure life, liberty, and the pursuit of happiness
   3. Place reasonable limits on human rights in Canada
   4. None of the above

1. What are inter-provincial revenue disparities known as?
   1. Lateral fiscal gaps
   2. Vertical fiscal gaps
   3. Horizontal fiscal gaps
   4. All of the above
2. What does a vertical fiscal gap refer to?
   1. A revenue disparity between the federal and provincial orders of government.
   2. A revenue disparity between the provinces and the territories.
   3. An expenditure disparity between countries in North America.
   4. An expenditure disparity between municipalities and the provincial government.
3. When was the equalization program established?
   1. 1867
   2. 1917
   3. 1957
   4. 1997

1. Which of the following statements is correct?
   1. Equalization payments were designed to address the vertical fiscal imbalance in Canada.
   2. There have never been any changes to the formula used to calculate equalization payments.
   3. Governments of richer provinces send transfers to governments of poorer provinces
   4. None of the above
2. What are federal transfers to the provinces that may only be used for a specific purpose, and are subject to federal government restrictions or standards?
   1. Targeted loans
   2. Earmarks
   3. Stabilization transfers
   4. Conditional grants
3. Which of the following represents one of the five conditions of the Canada Health Act?
   1. Provincial health services must be comprehensive in terms of medically necessary services.
   2. Provincial health services must be restricted to residents who live in that province.
   3. Provincial health services must be privately administered.
   4. Provincial health services must be affordable.

1. How does the federal government distribute Canada Health Transfer funds among provinces?
   1. based on each province’s demonstrated need
   2. based on each province’s annual health expenditures
   3. based on the average cost of delivering health services across Canada
   4. based on the number of people living in each province
2. Which of the following is true of equalization payments?
   1. Every province has received equalization at some point in Canadian history.
   2. Equalization transfers are conditional grants.
   3. The equalization formula is determined by consensus among provincial governments.
   4. Both B and C
3. Which of the following terms aligns most closely with the concept of inter-state federalism?
   1. bicameralism
   2. executive federalism
   3. asymmetrical federalism
   4. reservation
4. What is the Council of the Federation an example of?
   1. A vertical institution
   2. An institution of inter-state federalism
   3. An institution of intra-state federalism
   4. All of the above
5. Which of the following powers has not fallen into disuse and remains a politically viable tool for the federal government to exert authority over the provinces?
   1. Power of reservation
   2. Power of disallowance
   3. Declaratory power
   4. None of the above
6. Which of the following scenarios best describes classical federalism?
   1. The federal government creating national programs supported by the provinces.
   2. The federal government initiating spending programs to stimulate the economy.
   3. The federal government withdrawing from areas of provincial jurisdiction, like health care.
   4. The federal government providing added control to Quebec over immigration.
7. What is the name of the primary transfer program designed to address the horizontal imbalance?
   1. Canada Social Transfer
   2. Canadian Health Transfer
   3. Equalization
   4. Stabilization
8. Which power provides control to the federal government over any area not specifically listed in the constitution?
   1. Reservation
   2. Disallowance
   3. Residual
   4. Declaratory

1. What must the funds from equalization be spent on?
   1. Healthcare
   2. Education
   3. Social services
   4. Whatever the province receiving it sees fit.
2. Which of the following does not fall under federal jurisdiction according to Section 91 of the Constitution Act, 1867?
   1. currency and banking
   2. military and defense
   3. criminal law
   4. property and civil rights
3. John A. Macdonald and his fellow constitutional framers wished to create what form of federalism for Canada in 1867?
   1. highly decentralized
   2. highly centralized
   3. highly cooperative
   4. None of the above
4. Which of the following groups is most likely to support limitations on the federal spending power?
   1. supporters of national standards for social programs like health care and education
   2. residents of less-affluent provinces
   3. premiers of Quebec
   4. unemployed Canadians who receive federal funds to upgrade their skills training
5. Which metaphor is used to describe the division of powers under classical federalism?
   1. watertight compartments
   2. mosaic
   3. living tree
   4. brokerage
6. Which of the following is an example of co-operative federalism?
   1. the federal government establishing new national programs with provincial support
   2. National Indigenous Leaders meeting annually with first ministers
   3. provincial governments working together to manage a national education system
   4. Ottawa ceasing to spend in areas of provincial jurisdiction
7. Which of the following is an example of symmetrical federalism?
   1. most original provinces of Confederation receive more senators than later entrants
   2. Quebec has greater input on the selection of Supreme Court justices
   3. Quebec is guaranteed three of nine seats on the Supreme Court
   4. the Triple-E Senate model would grant each province an equal number of seats
8. Which of the following is an example of Canada’s horizontal fiscal imbalance?
   1. provincial governments in the West raise more revenue than those in the East
   2. provinces with stronger oil and gas industries tend to have more lavish social programs
   3. provincial governments run larger budget deficits than the federal government
   4. provincial governments run smaller budget deficits than the federal government
9. Which of the following is an example of Canada’s vertical fiscal gap?
   1. collectively, provincial governments raise more revenue than the federal government
   2. the federal government spends more per capita than every provincial government does
   3. provincial government revenues are much greater than territorial government revenues
   4. provincial governments in Atlantic Canada have the highest rates of public debt
10. What is the essence of the equalization principle enshrined in the Constitution Act, 1982?
    1. the federal government can spend on anything it wants, regardless of jurisdiction
    2. all provincial governments should be able to provide similar levels of public service without resorting to dramatically higher taxes than their neighbours
    3. when a provincial government falls upon hard times, other provincial governments should contribute funds directly to their recovery
    4. individual Canadians should be protected from undue hardship as the result of losing a job
11. What happens if a provincial government fails to live up to the standards of the Canada Health Act?
    1. the federal government may halt their equalization payments
    2. the federal government may reduce their Canada Health Transfer payments
    3. the Supreme Court may levy fines
    4. None of the above
12. Which of the following is an example of functional federalism?
    1. weekly teleconferences among civil servants across Canada
    2. semi-annual meetings of the Council of the Federation
    3. the Senate suggesting amendments to a government bill
    4. All of the above
13. Which of the following is most closely associated with emergency federalism?
    1. decentralized federalism
    2. centralized federalism
    3. treaty federalism
    4. classical federalism
14. Which of the following developments did not contribute to the centralization of Canadian federalism?
    1. early court rulings by the Justice Committee of the Privy Council
    2. World War I
    3. the Great Depression
    4. World War II

True or False Questions

1. In federations like Canada, regional governments retain sovereignty in some areas while surrendering some sovereignty to a central government to act on behalf of all members.

1. In federations like Canada, powers can be revoked by either order of the government without permission of the other.
2. Compared to other federations, like the United States, Canada’s institutions of intrastate federalism are far weaker than its institutions of interstate federalism.
3. Federalism is a system of government that enables public policy to be responsive to local concerns while being unified by a set of common, overarching objectives.

1. As an element of property and civil rights, the regulation of automobile insurance falls under provincial jurisdiction.

1. In Canada, the authority of territorial governments is devolved from the federal government; it can be rescinded or altered at any time without the permission of the territorial government.
2. The federal power of disallowance was often used in the nineteenth century, but has not been used in over 75 years.

1. The symmetrical view of federalism treats all provinces as equals, irrespective of their geographic size, population, economic capacity, history, or political identity.
2. Over time, the importance that the general public has attached to social welfare programs has meant that provincial governments have become less powerful than the Fathers of Confederation anticipated.
3. In Canada, regional disparities are rarely due to differential access to natural resources like gas and oil.

1. Since 2007, the equalization formula has been based on a nine-province standard, meaning that all jurisdictions except Quebec are included in the calculation of the country’s average revenue-generating capacity.
2. The Canada Health and Social Transfer, in place from 1996 to 2003, was a conditional grant that forbade provinces from imposing residency requirements on Canadians receiving welfare services.
3. Intra-state federalism takes place outside the parameters of the central government.
4. The onset of the Quiet Revolution in Quebec in the 1960s and the subsequent election of the Parti Québécois in 1976 accelerated the post-war decentralization of Canadian federalism.

1. Classical federalism involves the federal and provincial governments working together to solve public-policy problems.
2. The increasing involvement of provincial governments in international affairs is known as treaty federalism.
3. At the time of Confederation, bicameralism was seen as a key element of intra-state federalism in Canada.
4. In Canada, both the federal and provincial orders of government derive their sovereignty from the Crown.
5. In terms of their subordinate constitutional status, municipalities are to provinces as territories are to the federal government.
6. In Canada today, the federal government routinely invokes the power of reservation to set aside provincial legislation for review by the governor general.
7. To proponents of centralization, the POGG clause gives the federal government the authority to define the national interest.
8. In Canada, any powers not explicitly outlined in the constitution fall under provincial jurisdiction.
9. Through the federal spending power, the federal government has exercised influence in areas of provincial jurisdiction.
10. Under classical federalism, federal and provincial governments operate independently of each other in their own respective areas of jurisdiction.
11. The view that Canada consists primarily of two nations – one French and one English – corresponds with a symmetrical view of federalism.
12. The equalization program is designed to address the horizontal fiscal imbalance in Canada.
13. Alberta has never received equalization payments.
14. Newfoundland and Labrador has always received equalization payments.
15. Over time, vertical fiscal transfers in Canada have shifted from conditional grants to shared-cost models.
16. Over time, vertical fiscal transfers in Canada have shifted from needs-based to per-capita formulas.

Short Answer Questions

1. What do the authors mean by the phrase, “where you stand on Canadian federalism depends on where you sit”?
2. What is the nature of the constitutional status of the three northern territories and what are the implications of this?

1. Is it ironic that Canada is now among the world’s most decentralized federations? Why or why not?
2. Define and give examples of symmetrical and asymmetrical federalism.
3. What is meant by the term social safety net? Who is responsible for maintaining it?
4. What is the purpose of vertical fiscal transfers?
5. What is the vertical fiscal imbalance in Canada, and why did it develop?
6. What is the difference between a vertical fiscal transfer and a horizontal fiscal transfer?
7. Identify and explain the primary measure of fiscal federalism used to address the horizontal fiscal imbalance.

1. What are some of the factors that facilitated the development of a federal system in Canada in 1867?
2. The text notes “there is theoretically no hierarchy in Canadian federalism today.” What does this mean?
3. A number of levels of governments (e.g. municipalities and territories) do not have a formal constitutional status. How do these governments operate within the federal system?
4. What tools does the federal government have at its disposal to attempt to exert power over provincial governments?
5. What is meant by a horizontal fiscal imbalance? What does this mean for the operation of federalism?

1. What are the differences between conditional and unconditional transfers? Please provide examples of each.
2. What are residual powers and why are they so important in a federal system?
3. Define and contrast the terms inter-state federalism and intra-state federalism.
4. Define and contrast the terms classic federalism and treaty federalism.
5. Describe how vertical fiscal transfers have evolved over time.
6. What is a per capita transfer? Provide an example.

Essay Questions

1. Why did the Fathers of Confederation select federalism as the preferred model for Canadian government?
2. Identify and explain the tools of federal dominance embedded in the British North America Act, 1867. Why did they fail to have their desired effect on Canadian government?
3. What are the enduring myths about Canada’s equalization program that often confuse our understanding of fiscal federalism?