Exam 12: Taxing and Spending

A _____ tax increases as a percentage of a person's income as that income rises.

Which of the following bonds is issued to fund the construction of a facility to be used by a private firm?

Revenue bonds are backed up by expected income from a specific project or service; examples include a toll bridge, a municipal sewer system, or a sports complex.

The concept of elasticity is demonstrated if, as per capita income grows, revenues also increase without increases in the tax rate.

The taxable resources of a government jurisdiction are known as

Many states have experienced limited discretion in taxing and spending due to

Tony lives in a state where low-income residents have to pay a higher percentage of their income to taxes than high-income residents. This is an example of a _____ tax.

Which of the following is NOT an example of a user fee?

Every state except Vermont is constitutionally or statutorily mandated to balance its budget each fiscal year.

When applied to all merchandise, the sales tax is clearly _____, because poor people must spend a larger portion of their incomes than rich people on basics such as food and clothing.