Question 1

​Which characterization of the Texas system of taxation is not accurate?

Accepted Answer

A) ​The business franchise (margins) tax in Texas is a significant burden on the business community and has raised far more money for the state than expected. 
B) ​Texas has no personal income tax and no true corporate income tax. 
C) Texas tax policy reflects its individualistic and traditionalistic political cultures. 
D) Texas taxes place a heavier burden on low- and middle-income families than on businesses or the wealthy. 
E) ​Texas overrelies on sales taxes. 
A) ​The business franchise (margins) tax in Texas is a significant burden on the business community and has raised far more money for the state than expected. 
B) ​Texas has no personal income tax and no true corporate income tax. 
C) Texas tax policy reflects its individualistic and traditionalistic political cultures. 
D) Texas taxes place a heavier burden on low- and middle-income families than on businesses or the wealthy. 
E) ​Texas overrelies on sales taxes.

Question 2

​The effect of pari-mutuel betting and the lottery has been _____.

Accepted Answer

A) ​that they have not been major sources of revenue for state government 
B) ​that they have raised significant percentages of money for state government 
C) ​limited, as they have been found to be unconstitutional 
D) ​that they have far exceeded revenue expectations 
E) ​that they have raised significant percentages of money for state government and have far exceeded revenue expectations 
A) ​that they have not been major sources of revenue for state government 
B) ​that they have raised significant percentages of money for state government 
C) ​limited, as they have been found to be unconstitutional 
D) ​that they have far exceeded revenue expectations 
E) ​that they have raised significant percentages of money for state government and have far exceeded revenue expectations

Question 3

Which of these five major revenue funds in Texas supports the majority of state programs?

Accepted Answer

A) State Highway Fund 
B) Highway Motor Fuel Fund 
C) Available School Fund 
D) Omnibus Tax Clearance Fund 
E) General Revenue Fund 
A) State Highway Fund 
B) Highway Motor Fuel Fund 
C) Available School Fund 
D) Omnibus Tax Clearance Fund 
E) General Revenue Fund

Question 4

Because the framers of the state constitution believed in "pay-as-you-go" government,_____.

Accepted Answer

A) state government borrowing is highly restricted 
B) emergency borrowing by the state must be approved by a four-fifths majority vote of the legislature 
C) the governor, the lieutenant governor, and the speaker of the House can authorize limited borrowing 
D) state government borrowing is highly restricted; and emergency borrowing by the state must be approved by a four-fifths majority vote of the legislature 
E) state government borrowing is highly restricted;emergency borrowing by the state must be approved by a four-fifths majority vote of the legislature; and the governor, the lieutenant governor, and the speaker of the House can authorize limited borrowing 
A) state government borrowing is highly restricted 
B) emergency borrowing by the state must be approved by a four-fifths majority vote of the legislature 
C) the governor, the lieutenant governor, and the speaker of the House can authorize limited borrowing 
D) state government borrowing is highly restricted; and emergency borrowing by the state must be approved by a four-fifths majority vote of the legislature 
E) state government borrowing is highly restricted;emergency borrowing by the state must be approved by a four-fifths majority vote of the legislature; and the governor, the lieutenant governor, and the speaker of the House can authorize limited borrowing

Question 5

Which type of tax does Texas not have?

Accepted Answer

A) motor fuels tax 
B) personal income tax 
C) inheritance tax 
D) general sales tax 
E) severance tax 
A) motor fuels tax 
B) personal income tax 
C) inheritance tax 
D) general sales tax 
E) severance tax

Question 6

​Which statementabout the Texas economy is not true?

Accepted Answer

A) ​The economic distance between highly skilled and unskilled workers is growing. 
B) ​State policymakers expanded the Texas economy by creating a strong educational system. 
C) ​The Texas economy has been characterized as a "boom and bust" economy. 
D) ​Many of the jobs created in Texas are minimum-wage jobs. 
E) ​Texas's tax structure is favorable for the business community. 
A) ​The economic distance between highly skilled and unskilled workers is growing. 
B) ​State policymakers expanded the Texas economy by creating a strong educational system. 
C) ​The Texas economy has been characterized as a "boom and bust" economy. 
D) ​Many of the jobs created in Texas are minimum-wage jobs. 
E) ​Texas's tax structure is favorable for the business community.

Question 7

​What is tax elasticity?How does Texas's lack of tax elasticity create problems for budgeting in Texas?

Accepted Answer

Tax elasticity refers to the responsiven

Question 8

​When the state of Texas contracts with a private company to build and run prisons in Texas,this is an example of _____.

Accepted Answer

A) ​moralistic culture 
B) ​competition among governments 
C) ​performance review 
D) ​privatization 
E) ​changing the state's tax structure 
A) ​moralistic culture 
B) ​competition among governments 
C) ​performance review 
D) ​privatization 
E) ​changing the state's tax structure

Question 9

​Which statementabout progressive taxation is not true?

Accepted Answer

A) ​Texas has a highly progressive tax system. 
B) ​The federal income tax is an example of progressive taxation. 
C) ​Texas has passed a constitutional amendment making a progressive income tax very difficult to create. 
D) ​Progressive taxation is where the rate of taxation goes up as income goes up. 
E) ​Progressive taxation is also known as an "ability to pay" tax. 
A) ​Texas has a highly progressive tax system. 
B) ​The federal income tax is an example of progressive taxation. 
C) ​Texas has passed a constitutional amendment making a progressive income tax very difficult to create. 
D) ​Progressive taxation is where the rate of taxation goes up as income goes up. 
E) ​Progressive taxation is also known as an "ability to pay" tax.

Question 10

A _____ tax is a tax levied on the removal of natural resources (especially oil and gas)from the earth.

Accepted Answer

A) franchise 
B) property 
C) corporate income 
D) severance 
E) motor fuels 
A) franchise 
B) property 
C) corporate income 
D) severance 
E) motor fuels

Question 11

​Which statement about state university tuition in Texas is not true?

Accepted Answer

A) ​State policymakers wanted college students to pay a higher proportion of the costs of their education. 
B) ​Tuition and fees at state universities in Texas is 100 times the rate they were thirty years ago. 
C) ​The lottery in Texas keeps college tuition affordable. 
D) ​Tuition increases are part of a state pattern of increasing user fees. 
E) ​Tuition for graduate school and for out-of-state students is now much higher. 
A) ​State policymakers wanted college students to pay a higher proportion of the costs of their education. 
B) ​Tuition and fees at state universities in Texas is 100 times the rate they were thirty years ago. 
C) ​The lottery in Texas keeps college tuition affordable. 
D) ​Tuition increases are part of a state pattern of increasing user fees. 
E) ​Tuition for graduate school and for out-of-state students is now much higher.

Question 12

​Revenue taxes are designed to _____,while regulatory taxes are designed to _____.

Accepted Answer

A) ​raise governmental income for the state; ​raise governmental income for the federal government 
B) ​be income taxes; be user fees 
C) ​be fair; be a punishment 
D) ​raise government income; punish undesired behavior or reward desired behavior 
E) ​be easy to raise; be hard to raise 
A) ​raise governmental income for the state; ​raise governmental income for the federal government 
B) ​be income taxes; be user fees 
C) ​be fair; be a punishment 
D) ​raise government income; punish undesired behavior or reward desired behavior 
E) ​be easy to raise; be hard to raise

Question 13

A _____ year is the budget year for a government or corporation.​

Accepted Answer

A) ​financial 
B) ​fiscal 
C) ​economic 
D) ​spending 
E) ​debt 
A) ​financial 
B) ​fiscal 
C) ​economic 
D) ​spending 
E) ​debt

Question 14

​Which statement is an argument in support of a state income tax for Texas?

Accepted Answer

A) ​Texas does fine except when the economy is in an economic slump. 
B) ​It is fair for poor people to pay a higher percentage of their income in taxes because they demand more government services. 
C) ​Our current tax system attracts new businesses to Texas that might not come if we had a state income tax. 
D) ​Income taxes would create a more progressive tax system. 
E) ​A state income tax would require a constitutional amendment, which would be unlikely. 
A) ​Texas does fine except when the economy is in an economic slump. 
B) ​It is fair for poor people to pay a higher percentage of their income in taxes because they demand more government services. 
C) ​Our current tax system attracts new businesses to Texas that might not come if we had a state income tax. 
D) ​Income taxes would create a more progressive tax system. 
E) ​A state income tax would require a constitutional amendment, which would be unlikely.

Question 15

Cross-Chapter Essay Question (Chapters 10,12,and 13): To what extent are Texas's problems in education tied to the state's system of taxing and spending?Explain.Be sure to discuss education as a civil right,the current state of education in the state,and how education is funded in Texas (including local versus state taxes).

Accepted Answer

Texas's problems in education are closel

Question 16

In 1991,in order to increase state revenue,voters in Texas approved _____.

Accepted Answer

A) a state general sales tax 
B) charging tuition for the first time for students to attend state universities 
C) the Texas income tax 
D) the Texas lottery 
E) high cigarette and alcohol taxes 
A) a state general sales tax 
B) charging tuition for the first time for students to attend state universities 
C) the Texas income tax 
D) the Texas lottery 
E) high cigarette and alcohol taxes

Question 17

The Texas economy is shifting from one based on natural resources to one based on _____.

Accepted Answer

A) manufacturing 
B) the banking industry 
C) information and technology 
D) federal grants 
E) sports teams 
A) manufacturing 
B) the banking industry 
C) information and technology 
D) federal grants 
E) sports teams

Question 18

What term is used to describe increases in what things cost in an economy?

Accepted Answer

A) recession 
B) depression 
C) progressive taxation 
D) inflation 
E) regressive taxation 
A) recession 
B) depression 
C) progressive taxation 
D) inflation 
E) regressive taxation

Question 19

Which statement about the state of Texas's relationship with federal funding is true?​

Accepted Answer

A) ​Federal grants are the largest nontax source of money for the state government of Texas. 
B) ​Almost 40 percent of the total state revenues come from the federal government. 
C) ​State government in Texas has at times failed to take advantage of federal money because it would require the state to also spend money. 
D) ​The state government is concerned that the costs of meeting federal requirements might exceed the amount of money provided by the federal government. 
E) All of these statements are true. 
A) ​Federal grants are the largest nontax source of money for the state government of Texas. 
B) ​Almost 40 percent of the total state revenues come from the federal government. 
C) ​State government in Texas has at times failed to take advantage of federal money because it would require the state to also spend money. 
D) ​The state government is concerned that the costs of meeting federal requirements might exceed the amount of money provided by the federal government. 
E) All of these statements are true.

Question 20

Explain the difference between a progressive and a regressive system of taxation.How does Texas's tax system function with regard to progressivity and regressivity? Are taxes in Texas fair? Describe what changes,if any,you would recommend be made to Texas's system in order to improve it from the standpoint of fairness.

Accepted Answer

A progressive system of taxation is one

Which characterization of the Texas system of taxation is not accurate?

The effect of pari-mutuel betting and the lottery has been _____.

Which of these five major revenue funds in Texas supports the majority of state programs?

Because the framers of the state constitution believed in "pay-as-you-go" government,_____.

Which type of tax does Texas not have?

Which statementabout the Texas economy is not true?

What is tax elasticity?How does Texas's lack of tax elasticity create problems for budgeting in Texas?

When the state of Texas contracts with a private company to build and run prisons in Texas,this is an example of _____.

Which statementabout progressive taxation is not true?

A _____ tax is a tax levied on the removal of natural resources (especially oil and gas)from the earth.

Which statement about state university tuition in Texas is not true?

Revenue taxes are designed to _,while regulatory taxes are designed to _.

A _____ year is the budget year for a government or corporation.

Which statement is an argument in support of a state income tax for Texas?

In 1991,in order to increase state revenue,voters in Texas approved _____.

The Texas economy is shifting from one based on natural resources to one based on _____.

What term is used to describe increases in what things cost in an economy?

Which statement about the state of Texas's relationship with federal funding is true?

The Context of Texas Politics

The Constitutional Setting

Interest Groups

Political Parties

Voting,campaigns,and Elections

The Texas Legislature

The Governor

The Administrative State

The Judiciary

The Substance of Justice

Local Government

Public Policy: People

Public Policy: Resources

Filters

Exam 12: The State Economy and the Financing of State Government

​Which characterization of the Texas system of taxation is not accurate?

​The effect of pari-mutuel betting and the lottery has been _____.

Which of these five major revenue funds in Texas supports the majority of state programs?

Because the framers of the state constitution believed in "pay-as-you-go" government,_____.

Which type of tax does Texas not have?

​Which statementabout the Texas economy is not true?

​What is tax elasticity?How does Texas's lack of tax elasticity create problems for budgeting in Texas?

​When the state of Texas contracts with a private company to build and run prisons in Texas,this is an example of _____.

​Which statementabout progressive taxation is not true?

A _____ tax is a tax levied on the removal of natural resources (especially oil and gas)from the earth.

​Which statement about state university tuition in Texas is not true?

​Revenue taxes are designed to _____,while regulatory taxes are designed to _____.

A _____ year is the budget year for a government or corporation.​

​Which statement is an argument in support of a state income tax for Texas?

In 1991,in order to increase state revenue,voters in Texas approved _____.

The Texas economy is shifting from one based on natural resources to one based on _____.

What term is used to describe increases in what things cost in an economy?

Which statement about the state of Texas's relationship with federal funding is true?​

The Context of Texas Politics

The Constitutional Setting

Interest Groups

Political Parties

Voting,campaigns,and Elections

The Texas Legislature

The Governor

The Administrative State

The Judiciary

The Substance of Justice

Local Government

Public Policy: People

Public Policy: Resources

Filters

Which characterization of the Texas system of taxation is not accurate?

The effect of pari-mutuel betting and the lottery has been _____.

Which statementabout the Texas economy is not true?

What is tax elasticity?How does Texas's lack of tax elasticity create problems for budgeting in Texas?

When the state of Texas contracts with a private company to build and run prisons in Texas,this is an example of _____.

Which statementabout progressive taxation is not true?

Which statement about state university tuition in Texas is not true?

Revenue taxes are designed to _,while regulatory taxes are designed to _.

A _____ year is the budget year for a government or corporation.

Which statement is an argument in support of a state income tax for Texas?

Which statement about the state of Texas's relationship with federal funding is true?