Question 1

Which of the following statements is true of borrowing money?

Accepted Answer

A) Bonds are financial instruments issued by federal governments and bought by state governments. 
B) The power to borrow money for the long term does not require any voter approval. 
C) In most cases, revenue bonds require voter approval. 
D) State and local bonds are attractive to investors because the interest they earn is exempt from federal income tax. 
E) Private businesses can borrow money at a lower interest rate than state and local governments can. 
A) Bonds are financial instruments issued by federal governments and bought by state governments. 
B) The power to borrow money for the long term does not require any voter approval. 
C) In most cases, revenue bonds require voter approval. 
D) State and local bonds are attractive to investors because the interest they earn is exempt from federal income tax. 
E) Private businesses can borrow money at a lower interest rate than state and local governments can. D

Question 2

State constitutions cannot restrict state legislatures' taxing powers.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is true of state revenue and management systems?

Accepted Answer

A) Medicaid provides equal financial support to all states, irrespective of their economic status. 
B) Although states vary in their natural resources, it does not affect their ability to obtain severance taxes. 
C) States do not vary greatly in their fiscal capabilities. 
D) State and local governments vary greatly in their administrative capabilities. 
E) State revenue systems are better at collecting taxes on services than on goods. 
A) Medicaid provides equal financial support to all states, irrespective of their economic status. 
B) Although states vary in their natural resources, it does not affect their ability to obtain severance taxes. 
C) States do not vary greatly in their fiscal capabilities. 
D) State and local governments vary greatly in their administrative capabilities. 
E) State revenue systems are better at collecting taxes on services than on goods. D

Question 4

Often the general sales tax is set at a much higher rate than the specific sales tax.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following American states does not permit some form of legalized gambling?

Accepted Answer

A) California 
B) Utah 
C) Florida 
D) Louisiana 
E) Mississippi 
A) California 
B) Utah 
C) Florida 
D) Louisiana 
E) Mississippi

Question 6

State and local governments tax income, property, and sales since all three of these are indicators of what government would really like to tax-________.

Accepted Answer

A) status 
B) growth 
C) wealth 
D) education 
E) power 
A) status 
B) growth 
C) wealth 
D) education 
E) power

Question 7

What is a merit system? Who administers it?

Accepted Answer

An ideal response would be:
A merit syst

Question 8

Describe severance taxes.

Accepted Answer

An ideal response would be:
In several s

Question 9

What are the challenges faced by state and local governments in revenue management?

Accepted Answer

An ideal response would be:
Challenges f

Question 10

Which of the following statements is true about the expenditures of state and local governments?

Accepted Answer

A) State and local governments spend most of their money on cash assistance and administration. 
B) State and local governments are not able to collect much money through taxes, federal grants, and other sources. 
C) State and local governments spend very little on health and education. 
D) Public safety expenditures exclude police, fire protection, and corrections. 
E) Most of the spending on health is disbursed through the Medicaid program. 
A) State and local governments spend most of their money on cash assistance and administration. 
B) State and local governments are not able to collect much money through taxes, federal grants, and other sources. 
C) State and local governments spend very little on health and education. 
D) Public safety expenditures exclude police, fire protection, and corrections. 
E) Most of the spending on health is disbursed through the Medicaid program.

Question 11

Define general property tax.

Accepted Answer

An ideal response would be:
The general

Question 12

A ________ is where public employment hiring and promotion are based on demonstrated skill, training, and performance rather than on political patronage.

Accepted Answer

A) merit system 
B) connector model 
C) two-track system 
D) de facto segregation 
E) spoils system 
A) merit system 
B) connector model 
C) two-track system 
D) de facto segregation 
E) spoils system

Question 13

Explain legalized gambling as a source of revenue.

Accepted Answer

An ideal response would be:
There has be

Question 14

State and local bonds are attractive to investors because the interest they earn is exempt from federal income tax.

Accepted Answer

A) True 
 B)False

Question 15

The Continental Congress financed the Revolutionary War by ________.

Accepted Answer

A) issuing a tax on farm goods 
B) running a lottery 
C) non-lottery gambling 
D) borrowing money from the French 
E) receiving grants from the federal government 
A) issuing a tax on farm goods 
B) running a lottery 
C) non-lottery gambling 
D) borrowing money from the French 
E) receiving grants from the federal government

Question 16

Building schools, constructing roads, and clearing slums are examples of ________.

Accepted Answer

A) capital expenditures 
B) malapportionment 
C) reinvestments 
D) capital gains 
E) severances 
A) capital expenditures 
B) malapportionment 
C) reinvestments 
D) capital gains 
E) severances

Question 17

The property tax is easy to administer, and it bears no relationship to taxpayers' income or other measures of their ability to pay.

Accepted Answer

A) True 
 B)False

Question 18

Dealing with public sector labor unions is a major focus of state and local government in many states.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is true about American state lottery revenues?

Accepted Answer

A) In recent decades, state lotteries have decreased in popularity because they raise taxes. 
B) Church groups are very vocal in their support of state lotteries. 
C) Lottery revenues are spread evenly across all the states. 
D) All states earmark all of their proceeds from lotteries for education. 
E) A significant number of states commit their proceeds from lotteries to the state general fund. 
A) In recent decades, state lotteries have decreased in popularity because they raise taxes. 
B) Church groups are very vocal in their support of state lotteries. 
C) Lottery revenues are spread evenly across all the states. 
D) All states earmark all of their proceeds from lotteries for education. 
E) A significant number of states commit their proceeds from lotteries to the state general fund.

Question 20

________ between governments, usually from higher levels of government to lower levels, are essential and influential sources of revenue for state and local governments.

Accepted Answer

A) Grants 
B) Sales 
C) Taxes 
D) Lotteries 
E) Bonds 
A) Grants 
B) Sales 
C) Taxes 
D) Lotteries 
E) Bonds

Which of the following statements is true of borrowing money?

State constitutions cannot restrict state legislatures' taxing powers.

Which of the following is true of state revenue and management systems?

Often the general sales tax is set at a much higher rate than the specific sales tax.

Which of the following American states does not permit some form of legalized gambling?

State and local governments tax income, property, and sales since all three of these are indicators of what government would really like to tax-________.

What is a merit system? Who administers it?

Describe severance taxes.

What are the challenges faced by state and local governments in revenue management?

Which of the following statements is true about the expenditures of state and local governments?

Define general property tax.

A ________ is where public employment hiring and promotion are based on demonstrated skill, training, and performance rather than on political patronage.

Explain legalized gambling as a source of revenue.

State and local bonds are attractive to investors because the interest they earn is exempt from federal income tax.

The Continental Congress financed the Revolutionary War by ________.

Building schools, constructing roads, and clearing slums are examples of ________.

The property tax is easy to administer, and it bears no relationship to taxpayers' income or other measures of their ability to pay.

Dealing with public sector labor unions is a major focus of state and local government in many states.

Which of the following statements is true about American state lottery revenues?

________ between governments, usually from higher levels of government to lower levels, are essential and influential sources of revenue for state and local governments.

State and Local Politics

American Federalism

State Constitutions: Charters or Straightjackets

Parties and Elections in the States

State Legislatures

State Governors

Judges and the Justice in the States

Local Governments and Metropolitics

Making State and Local Policy

Filters

Exam 10: People and Money in State and Local Governments

Which of the following statements is true of borrowing money?

State constitutions cannot restrict state legislatures' taxing powers.

Which of the following is true of state revenue and management systems?

Often the general sales tax is set at a much higher rate than the specific sales tax.

Which of the following American states does not permit some form of legalized gambling?

State and local governments tax income, property, and sales since all three of these are indicators of what government would really like to tax-________.

What is a merit system? Who administers it?

Describe severance taxes.

What are the challenges faced by state and local governments in revenue management?

Which of the following statements is true about the expenditures of state and local governments?

Define general property tax.

A ________ is where public employment hiring and promotion are based on demonstrated skill, training, and performance rather than on political patronage.

Explain legalized gambling as a source of revenue.

State and local bonds are attractive to investors because the interest they earn is exempt from federal income tax.

The Continental Congress financed the Revolutionary War by ________.

Building schools, constructing roads, and clearing slums are examples of ________.

The property tax is easy to administer, and it bears no relationship to taxpayers' income or other measures of their ability to pay.

Dealing with public sector labor unions is a major focus of state and local government in many states.

Which of the following statements is true about American state lottery revenues?

________ between governments, usually from higher levels of government to lower levels, are essential and influential sources of revenue for state and local governments.

State and Local Politics

American Federalism

State Constitutions: Charters or Straightjackets

Parties and Elections in the States

State Legislatures

State Governors

Judges and the Justice in the States

Local Governments and Metropolitics

Making State and Local Policy

Filters