Exam 12: Taxing and Spending

The term _____ refers to the set of political choices that frames economic policy.

In 1978, California voters passed Proposition 13, which significantly raised property taxes and is credited with kicking off a taxpayer revolt across in California

The national government contributes about one-quarter of all state and local revenues; however, more than 60 percent of these federal monies are passed to individual recipients such as those receiving Medicaid.

Casino gambling and Internet betting parlors are now offered in forty states.

Setting specific prices on goods and services provided by state and local governments is a time-proven method that clearly pursues the

A(n) _____ occurs when people demand more government services but do not want to pay for them through higher taxes.

Stockton, California declared bankruptcy in 2012 for several reasons, including expensive new civic projects developed before the financial crisis and costly wage and benefit agreements.

What are the major services for which state and local governments spend the most money? What trends have taken place over the past ten years in terms of areas where spending is growing faster and slower than the average? What factors are influencing these trends? How does this impact taxpayers' willingness to raise or sustain revenues to pay for those programs and services?

Which of the following is NOT a way that states restrict state and local government borrowing?

The movement of money or other resources from one level of government to another is known as

The national government contributes about _____ percent of all state and local expenditures.

The general sales tax is a good example of a progressive tax.

_____ asserts that taxes should be levied on those who benefit directly from a government service.

The largest expenditure gains in recent years have been in Medicare.

Which of the following is an advantage of user fees?

Financial pressure on a government from factors such as revenue shortfalls, and taxing and spending limitations is generally referred to as

Having to pay a user fee to use a municipal golf course would be an example of the benefit principle.

A regressive tax places a greater burden on the affluent because the tax rate falls as taxable income rises.

State lotteries are a fairly recent phenomenon and came about as a response to the fiscal stress of the 1970s and 1980s.

Most political scientists and economists agree that the most important criteria for evaluating taxes are equity, yield, elasticity, ease of administration, political accountability, and acceptability.