Role of Government in a Market Economy
Scoring Guide: Activity 2

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1. Answers would include:
   • Congress did not have the power to put on or collect taxes.
   • Congress could raise money only by borrowing or asking for it from the states.
   • Each state had to collect taxes from its own citizens and then give it to the national treasury.
   • Congress could not regulate trade.
   • This caused conflicts between the states and had an effect on international trade as well.
   • There were tariff barriers between the states and there was no national currency - states issued their own money.
2. Answers would include:
   • Enumerated powers given to the Legislative Branch
     • Levying taxes
     • Borrow money
     • Regulate commerce
     • Coin money
     • Punish counterfeiting
   • Section 8 of Article I also includes:
     • Setting up a postal system
     • Securing patents and copyrights
     • Taxes are necessary to pay for government programs and services for its citizens
     • Taxes are collected from all citizens of age and ability to pay ( public contribution) and used for public goods and services ( such as streetlights and military defense) and transfer payments ( such as Medicare and Social Security).