Question 1

What is the equity principle behind benefit-based excise taxes?

Accepted Answer

These taxes are collected from individuals who use or benefit from certain public facilities and services, and the revenues from the taxes help finance those facilities and services.

Question 2

Name three examples of new excise taxes that have been levied by state or local governments in the United States.

Accepted Answer

Ride sharing services, rental housing, recreational marijuana.

Question 3

The vertical equity implications of the sales tax are substantially dependent on the portion of an individual's income that is spent on the items subject to the sales tax.

Accepted Answer

A) True 
 B)False  True

Question 4

The general sales tax is the largest own-source revenue for state governments.

Accepted Answer

A) True 
 B)False

Question 5

Demand for alcohol and tobacco products is considered by economists to be relatively:

Accepted Answer

A)  selective. 
B)  variable. 
C)  elastic. 
D)  inelastic. 
A)  selective. 
B)  variable. 
C)  elastic. 
D)  inelastic.

Question 6

What is a value-added tax?

Accepted Answer

A VAT is a consumption tax on

Question 7

What are some examples of goods subject to selective sales taxes?

Accepted Answer

Luxury automobiles,

Question 8

Is the sales tax a progressive or a regressive tax? What are the policy actions that governments can take that change the vertical equity implications of the sales tax? Provide examples of the application of these policies in the United States.

Accepted Answer

The sales tax is generally considered to

Question 9

Which of the following is not a general category of excise tax?

Accepted Answer

A)  Unemployment 
B)  Luxury 
C)  Sumptuary 
D)  Benefit-based 
A)  Unemployment 
B)  Luxury 
C)  Sumptuary 
D)  Benefit-based

Question 10

Sumptuary excise taxes are most often ad valorem taxes.

Accepted Answer

A) True 
 B)False

Question 11

Most states include the professional services of doctors, lawyers, dry cleaners, or accountants in their sales tax base.

Accepted Answer

A) True 
 B)False

Question 12

Federal and state taxes together make up what percentage of the cost of a six-pack of beer?

Accepted Answer

A)  15% 
B)  25% 
C)  40% 
D)  50% 
A)  15% 
B)  25% 
C)  40% 
D)  50%

Question 13

Which of the following is an example of a special-occasion user fee?

Accepted Answer

A)  Public transit fares 
B)  Sewer charges 
C)  Building permit fees 
D)  Expressway tolls 
A)  Public transit fares 
B)  Sewer charges 
C)  Building permit fees 
D)  Expressway tolls

Question 14

The overall effect of luxury excise taxes is to make the sales tax system more progressive.

Accepted Answer

A) True 
 B)False

Question 15

General sales taxes are unit taxes.

Accepted Answer

A) True 
 B)False

Question 16

What is the equity principle behind user fees?

Accepted Answer

These fees are collected from

Question 17

Which of the following is not an accurate statement about state lotteries?

Accepted Answer

A)  Lottery profits tend to generate a relatively small percentage (less than 10%) of state revenues. 
B)  Lotteries are inexpensive to administer. 
C)  Lotteries are operated by every state. 
D)  Lotteries can be regressive. 
A)  Lottery profits tend to generate a relatively small percentage (less than 10%) of state revenues. 
B)  Lotteries are inexpensive to administer. 
C)  Lotteries are operated by every state. 
D)  Lotteries can be regressive.

Question 18

Many states permit a separate local sales tax in addition to the state sales tax.

Accepted Answer

A) True 
 B)False

Question 19

Why are sales taxes considered regressive?

Accepted Answer

Higher-income consumers have more discre

Question 20

If transit fares remain artificially low because of subsidies, then only the poor who use the system benefit.

Accepted Answer

A) True 
 B)False

What is the equity principle behind benefit-based excise taxes?

Name three examples of new excise taxes that have been levied by state or local governments in the United States.

The vertical equity implications of the sales tax are substantially dependent on the portion of an individual's income that is spent on the items subject to the sales tax.

The general sales tax is the largest own-source revenue for state governments.

Demand for alcohol and tobacco products is considered by economists to be relatively:

What is a value-added tax?

What are some examples of goods subject to selective sales taxes?

Is the sales tax a progressive or a regressive tax? What are the policy actions that governments can take that change the vertical equity implications of the sales tax? Provide examples of the application of these policies in the United States.

Which of the following is not a general category of excise tax?

Sumptuary excise taxes are most often ad valorem taxes.

Most states include the professional services of doctors, lawyers, dry cleaners, or accountants in their sales tax base.

Federal and state taxes together make up what percentage of the cost of a six-pack of beer?

Which of the following is an example of a special-occasion user fee?

The overall effect of luxury excise taxes is to make the sales tax system more progressive.

General sales taxes are unit taxes.

What is the equity principle behind user fees?

Which of the following is not an accurate statement about state lotteries?

Many states permit a separate local sales tax in addition to the state sales tax.

Why are sales taxes considered regressive?

If transit fares remain artificially low because of subsidies, then only the poor who use the system benefit.

Introduction

The Public Sector in Perspective

The Government, the Economy, and Economic Development

Budget Cycles

Budgeting for Revenues: Income Taxes, Payroll Taxes, and Property Taxes

Budget Preparation: The Expenditure Side

Budget Preparation: The Decision Process

Budget Approval: The Role of the Legislature

Budget Approval: The US Congress

Budget Execution

Financial Management: Accounting, Reporting, and Auditing

Capital Assets: Planning and Budgeting, Analysis, and Management

Capital Finance and Debt Management

Intergovernmental Relations

Comparing the Great Recession and the COVID-19 Recession: Causes, Responses, and Effects

Filters

Exam 6: Budgeting for Revenues: Transaction-Based Revenue Sources

What is the equity principle behind benefit-based excise taxes?

Name three examples of new excise taxes that have been levied by state or local governments in the United States.

The vertical equity implications of the sales tax are substantially dependent on the portion of an individual's income that is spent on the items subject to the sales tax.

The general sales tax is the largest own-source revenue for state governments.

Demand for alcohol and tobacco products is considered by economists to be relatively:

What is a value-added tax?

What are some examples of goods subject to selective sales taxes?

Is the sales tax a progressive or a regressive tax? What are the policy actions that governments can take that change the vertical equity implications of the sales tax? Provide examples of the application of these policies in the United States.

Which of the following is not a general category of excise tax?

Sumptuary excise taxes are most often ad valorem taxes.

Most states include the professional services of doctors, lawyers, dry cleaners, or accountants in their sales tax base.

Federal and state taxes together make up what percentage of the cost of a six-pack of beer?

Which of the following is an example of a special-occasion user fee?

The overall effect of luxury excise taxes is to make the sales tax system more progressive.

General sales taxes are unit taxes.

What is the equity principle behind user fees?

Which of the following is not an accurate statement about state lotteries?

Many states permit a separate local sales tax in addition to the state sales tax.

Why are sales taxes considered regressive?

If transit fares remain artificially low because of subsidies, then only the poor who use the system benefit.

Introduction

The Public Sector in Perspective

The Government, the Economy, and Economic Development

Budget Cycles

Budgeting for Revenues: Income Taxes, Payroll Taxes, and Property Taxes

Budget Preparation: The Expenditure Side

Budget Preparation: The Decision Process

Budget Approval: The Role of the Legislature

Budget Approval: The US Congress

Budget Execution

Financial Management: Accounting, Reporting, and Auditing

Capital Assets: Planning and Budgeting, Analysis, and Management

Capital Finance and Debt Management

Intergovernmental Relations

Comparing the Great Recession and the COVID-19 Recession: Causes, Responses, and Effects

Filters