Question 1

A tax that is designed to target behavior that is deemed by lawmakers as morally unworthy is known as a

Accepted Answer

A) regressive tax. 
B) sin tax. 
C) discouragement tax. 
D) preventative tax. 
A) regressive tax. 
B) sin tax. 
C) discouragement tax. 
D) preventative tax.

Question 2

A 1 percent mill levy is the same as saying

Accepted Answer

A) the tax is $1 per $1,000 in assessed value of property. 
B) energy producers must pay 1 percent of their profit into the state general revenue fund. 
C) property tax is collected by the state government. 
D) local governments may tax property at 1 percent of the assessed value of property. 
A) the tax is $1 per $1,000 in assessed value of property. 
B) energy producers must pay 1 percent of their profit into the state general revenue fund. 
C) property tax is collected by the state government. 
D) local governments may tax property at 1 percent of the assessed value of property.

Question 3

Which of the following is TRUE regarding aid to the poor?

Accepted Answer

A) Assistance to the poor works in a dissimilar manner as medical benefit programs to the poor. 
B) Cash assistance to the poor represents a much lower proportion of state spending on social services than health care. 
C) In 1996,Congress passed a block grant program that shifted much of the responsibility for welfare assistance programs from state governments to the national government. 
D) The Temporary Assistance to Needy Families program represented an expansion of total welfare benefits. 
A) Assistance to the poor works in a dissimilar manner as medical benefit programs to the poor. 
B) Cash assistance to the poor represents a much lower proportion of state spending on social services than health care. 
C) In 1996,Congress passed a block grant program that shifted much of the responsibility for welfare assistance programs from state governments to the national government. 
D) The Temporary Assistance to Needy Families program represented an expansion of total welfare benefits.

Question 4

Which of the following regarding the property tax is NOT true?

Accepted Answer

A) In the past,the property tax was highly regressive,but as more lower-income people own homes,the property tax has become more progressive. 
B) One traditional rationale for the use of the property tax is that it taxes people who benefit the most from local public services. 
C) Overall,the property tax contributes less than 2 percent of total revenue collected by state governments. 
D) Property taxes are consistently rated as the most unpopular tax by Americans. 
A) In the past,the property tax was highly regressive,but as more lower-income people own homes,the property tax has become more progressive. 
B) One traditional rationale for the use of the property tax is that it taxes people who benefit the most from local public services. 
C) Overall,the property tax contributes less than 2 percent of total revenue collected by state governments. 
D) Property taxes are consistently rated as the most unpopular tax by Americans.

Question 5

Which of the following is NOT true regarding the sales tax?

Accepted Answer

A) Public opinion surveys have found that state sales taxes are the most popular of all other major revenue sources. 
B) The sales tax base continues to grow and become clearer over time. 
C) The sales tax has two clear weaknesses: elasticity and equity. 
D) For local governments,sales tax revenue can be attractive because it offers the opportunity to have visitors bear some of the tax burden. 
A) Public opinion surveys have found that state sales taxes are the most popular of all other major revenue sources. 
B) The sales tax base continues to grow and become clearer over time. 
C) The sales tax has two clear weaknesses: elasticity and equity. 
D) For local governments,sales tax revenue can be attractive because it offers the opportunity to have visitors bear some of the tax burden.

Question 6

When the fiscal crisis hit Arizona in the late 2000s,the state did all of the following to help balance the budget EXCEPT

Accepted Answer

A) used one-time federal stimulus funds and sold the state House and Senate buildings. 
B) raised income taxes. 
C) furloughed state employees. 
D) slashed spending on social services. 
A) used one-time federal stimulus funds and sold the state House and Senate buildings. 
B) raised income taxes. 
C) furloughed state employees. 
D) slashed spending on social services.

Question 7

Which of the following items is taxed at the state and federal level,with revenue often dedicated to transportation expenses?

Accepted Answer

A) Natural Gas 
B) Oil 
C) Gasoline 
D) Tobacco 
A) Natural Gas 
B) Oil 
C) Gasoline 
D) Tobacco

Question 8

Which tax generates most of the revenue collected in the United States by the federal government?

Accepted Answer

A) Property tax 
B) Income tax 
C) Sales tax 
D) Import duty 
A) Property tax 
B) Income tax 
C) Sales tax 
D) Import duty

Question 9

Which state leads the country in terms of how much state and local tax revenues (excluding fees)are generated relative to the amount of income in the state per person?

Accepted Answer

A) Connecticut 
B) Illinois 
C) Nebraska 
D) Florida 
A) Connecticut 
B) Illinois 
C) Nebraska 
D) Florida

Question 10

All of the following states do not have a sales tax EXCEPT

Accepted Answer

A) Oregon. 
B) New Hampshire. 
C) Pennsylvania. 
D) Montana. 
A) Oregon. 
B) New Hampshire. 
C) Pennsylvania. 
D) Montana.

Question 11

On average,which area of spending represents the largest part in a state's capital budgets?

Accepted Answer

A) Ports and harbors 
B) Transportation infrastructure 
C) Retirement homes 
D) New and renovated schools 
A) Ports and harbors 
B) Transportation infrastructure 
C) Retirement homes 
D) New and renovated schools

Question 12

Budgeting by state and local governments is an attempt to deal with

Accepted Answer

A) corruption. 
B) bad judgment. 
C) loans. 
D) who gets what from government at whose expense. 
A) corruption. 
B) bad judgment. 
C) loans. 
D) who gets what from government at whose expense.

Question 13

Which of the following statements is NOT true?

Accepted Answer

A) States making use of an income tax tend to have the most progressive revenue systems overall. 
B) Sales taxes collected by state governments tend to be more stable in times of economic downturns when compared to other taxes. 
C) Inflation can drive people who get "cost of living raises" into higher tax brackets even though their real earning power does not increase. 
D) Income taxes are relatively easy for governments to collect. 
A) States making use of an income tax tend to have the most progressive revenue systems overall. 
B) Sales taxes collected by state governments tend to be more stable in times of economic downturns when compared to other taxes. 
C) Inflation can drive people who get "cost of living raises" into higher tax brackets even though their real earning power does not increase. 
D) Income taxes are relatively easy for governments to collect.

Question 14

How does state income tax factor into a state's revenue mix? What are the benefits and critiques of state income taxes? How does your state's income tax policy compare to that of other states?

Accepted Answer

State income tax is a significant factor

Question 15

States that receive more money from the federal government

Accepted Answer

A) tend to spend less of their own funds for public services. 
B) also spend more of their own funds for public services. 
C) are more likely to have their own tax revolts. 
D) increases the likelihood that people will vote against their member of Congress. 
A) tend to spend less of their own funds for public services. 
B) also spend more of their own funds for public services. 
C) are more likely to have their own tax revolts. 
D) increases the likelihood that people will vote against their member of Congress.

Question 16

Which of the following tax break gives Internet retailers a major advantage over local businesses?

Accepted Answer

A) Sales taxes 
B) Property taxes 
C) Sin taxes 
D) Internet taxes 
A) Sales taxes 
B) Property taxes 
C) Sin taxes 
D) Internet taxes

Question 17

The main source of revenue for local governments is the

Accepted Answer

A) sales tax. 
B) income tax. 
C) property tax. 
D) intangibles tax. 
A) sales tax. 
B) income tax. 
C) property tax. 
D) intangibles tax.

Question 18

Which of the following is NOT true regarding budgeting rules?

Accepted Answer

A) Some balanced budget rules have weak provisions for enforcement. 
B) Tough budgeting rules do not prevent deficits when they are combined with limits on government borrowing. 
C) Rules that simply require a budget to be balanced may be less effective than rules that require a budget to be balanced at the end of the fiscal year. 
D) Some budgeting rules regulating long-term capital borrowing do not necessarily lead to less state indebtedness. 
A) Some balanced budget rules have weak provisions for enforcement. 
B) Tough budgeting rules do not prevent deficits when they are combined with limits on government borrowing. 
C) Rules that simply require a budget to be balanced may be less effective than rules that require a budget to be balanced at the end of the fiscal year. 
D) Some budgeting rules regulating long-term capital borrowing do not necessarily lead to less state indebtedness.

Question 19

One of the most noteworthy features of the sales tax is

Accepted Answer

A) its relative political acceptability. 
B) its elasticity or stability as a revenue source. 
C) its equity. 
D) its progressivity. 
A) its relative political acceptability. 
B) its elasticity or stability as a revenue source. 
C) its equity. 
D) its progressivity.

Question 20

Which statement is TRUE regarding the mix of local revenues?

Accepted Answer

A) Local governments do not rely on charges and fees as much as state governments do. 
B) Local governments' revenue packages look quite similar to those of states. 
C) Local governments typically receive less than 10 percent of their revenues from the state. 
D) Local governments rely more heavily on revenue transfers than states do. 
A) Local governments do not rely on charges and fees as much as state governments do. 
B) Local governments' revenue packages look quite similar to those of states. 
C) Local governments typically receive less than 10 percent of their revenues from the state. 
D) Local governments rely more heavily on revenue transfers than states do.

A tax that is designed to target behavior that is deemed by lawmakers as morally unworthy is known as a

A 1 percent mill levy is the same as saying

Which of the following is TRUE regarding aid to the poor?

Which of the following regarding the property tax is NOT true?

Which of the following is NOT true regarding the sales tax?

When the fiscal crisis hit Arizona in the late 2000s,the state did all of the following to help balance the budget EXCEPT

Which of the following items is taxed at the state and federal level,with revenue often dedicated to transportation expenses?

Which tax generates most of the revenue collected in the United States by the federal government?

Which state leads the country in terms of how much state and local tax revenues (excluding fees)are generated relative to the amount of income in the state per person?

All of the following states do not have a sales tax EXCEPT

On average,which area of spending represents the largest part in a state's capital budgets?

Budgeting by state and local governments is an attempt to deal with

Which of the following statements is NOT true?

How does state income tax factor into a state's revenue mix? What are the benefits and critiques of state income taxes? How does your state's income tax policy compare to that of other states?

States that receive more money from the federal government

Which of the following tax break gives Internet retailers a major advantage over local businesses?

The main source of revenue for local governments is the

Which of the following is NOT true regarding budgeting rules?

One of the most noteworthy features of the sales tax is

Which statement is TRUE regarding the mix of local revenues?

Introduction to State and Local Politics

Federalism: State and Local Politics Within a Federal System

Participation,elections,and Representation

State and Local Direct Democracy

Political Parties

Interest Groups

State Legislatures

Governors and the State Bureaucracy

State Courts and the Criminal Justice System

The Structure of Local Governments

Local Land Use and Environmental Politics

Morality Policy

Social Welfare and Health Care Policy

Education Policy

Filters

Exam 10: Fiscal Policy

A tax that is designed to target behavior that is deemed by lawmakers as morally unworthy is known as a

A 1 percent mill levy is the same as saying

Which of the following is TRUE regarding aid to the poor?

Which of the following regarding the property tax is NOT true?

Which of the following is NOT true regarding the sales tax?

When the fiscal crisis hit Arizona in the late 2000s,the state did all of the following to help balance the budget EXCEPT

Which of the following items is taxed at the state and federal level,with revenue often dedicated to transportation expenses?

Which tax generates most of the revenue collected in the United States by the federal government?

Which state leads the country in terms of how much state and local tax revenues (excluding fees)are generated relative to the amount of income in the state per person?

All of the following states do not have a sales tax EXCEPT

On average,which area of spending represents the largest part in a state's capital budgets?

Budgeting by state and local governments is an attempt to deal with

Which of the following statements is NOT true?

How does state income tax factor into a state's revenue mix? What are the benefits and critiques of state income taxes? How does your state's income tax policy compare to that of other states?

States that receive more money from the federal government

Which of the following tax break gives Internet retailers a major advantage over local businesses?

The main source of revenue for local governments is the

Which of the following is NOT true regarding budgeting rules?

One of the most noteworthy features of the sales tax is

Which statement is TRUE regarding the mix of local revenues?

Introduction to State and Local Politics

Federalism: State and Local Politics Within a Federal System

Participation,elections,and Representation

State and Local Direct Democracy

Political Parties

Interest Groups

State Legislatures

Governors and the State Bureaucracy

State Courts and the Criminal Justice System

The Structure of Local Governments

Local Land Use and Environmental Politics

Morality Policy

Social Welfare and Health Care Policy

Education Policy

Filters