Question 1

The proportion of total direct expenditure made by local governments is called the centralization ratio.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain B

Question 2

The flypaper effect causes money to move from where it initially hits and sticks somewhere down the bureaucratic chain.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain B

Question 3

Lump sum grants are sometimes referred to as categorical grants.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain B

Question 4

Grants as a percent of total federal outlays have been increasing since the 1960s.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 5

Which of the following is not a political jurisdiction?

Accepted Answer

A)  Cook County 
B)  Alabama 
C)  New York City 
D)  California research triangle 
A)  Cook County 
B)  Alabama 
C)  New York City 
D)  California research triangle

Question 6

A federal system consists of one level of government to provide public goods and services.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 7

The Tiebout model can be summarized as "voting with the invisible hand."

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 8

When did the percentage of federal grants in state and local expenditures reach its peak?

Accepted Answer

A)  1960s 
B)  1970s 
C)  1980s 
D)  1990s 
A)  1960s 
B)  1970s 
C)  1980s 
D)  1990s

Question 9

_________ percent of Americans have different residences than they did the year before.

Accepted Answer

A)  30 
B)  15 
C)  9 
D)  22 
A)  30 
B)  15 
C)  9 
D)  22

Question 10

For the last 100 years,the level of government that has seen the largest increase in its percentage of expenditures is

Accepted Answer

A)  local. 
B)  state. 
C)  federal. 
D)  all of these answer options are correct. 
A)  local. 
B)  state. 
C)  federal. 
D)  all of these answer options are correct.

Question 11

A local public good

Accepted Answer

A)  only benefits members of a particular community. 
B)  gives higher benefits than regular public goods. 
C)  requires unanimous voting. 
D)  has become an integral part of the federal government. 
A)  only benefits members of a particular community. 
B)  gives higher benefits than regular public goods. 
C)  requires unanimous voting. 
D)  has become an integral part of the federal government.

Question 12

A circuit breaker is concerned with

Accepted Answer

A)  faulty tax wiring. 
B)  residential property taxes. 
C)  corporate tax systems. 
D)  block grants. 
A)  faulty tax wiring. 
B)  residential property taxes. 
C)  corporate tax systems. 
D)  block grants.

Question 13

A Tiebout model involves

Accepted Answer

A)  completely mobile individuals. 
B)  governments generating no externalities. 
C)  perfect information. 
D)  all of these answer options are correct. 
A)  completely mobile individuals. 
B)  governments generating no externalities. 
C)  perfect information. 
D)  all of these answer options are correct.

Question 14

__________ explores the roles of different level of government and the ways in which they relate to each other.

Accepted Answer

A)  Federal system 
B)  Club model 
C)  Centralization 
D)  Fiscal federalism 
A)  Federal system 
B)  Club model 
C)  Centralization 
D)  Fiscal federalism

Question 15

The assessed value of a home is

Accepted Answer

A)  the value that the jurisdiction uses to assign taxes. 
B)  an annual 6% increase in the value of a home. 
C)  the annual rate of deprecation of a home because of use. 
D)  always lower than its market value. 
A)  the value that the jurisdiction uses to assign taxes. 
B)  an annual 6% increase in the value of a home. 
C)  the annual rate of deprecation of a home because of use. 
D)  always lower than its market value.

Question 16

When a tax is based on the difference between the market value of the taxpayer's assets and liabilities,it is called

Accepted Answer

A)  a difference tax. 
B)  a wedge tax. 
C)  a personal net worth tax. 
D)  an implied liability tax. 
A)  a difference tax. 
B)  a wedge tax. 
C)  a personal net worth tax. 
D)  an implied liability tax.

Question 17

In Tiebout Model,the tax can vary across communities.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 18

The Tiebout model offers a quasi-market solution to public good production and community development.What are some drawbacks to this model?

Accepted Answer

Some of the assumptions of the model are

Question 19

Disadvantages of decentralization are

Accepted Answer

A)  intercommunity externalities. 
B)  forgone scale economies in the provision of public goods. 
C)  inefficient taxation. 
D)  the lack of ability to redistribute income. 
E)  all of these answer options are correct. 
A)  intercommunity externalities. 
B)  forgone scale economies in the provision of public goods. 
C)  inefficient taxation. 
D)  the lack of ability to redistribute income. 
E)  all of these answer options are correct.

Question 20

Some cities have a relatively high residential property tax,while others have a low residential property tax.Give an explanation for this.

Accepted Answer

The number of people and their preferenc

Exam 22: Public Finance in a Federal System

The proportion of total direct expenditure made by local governments is called the centralization ratio.

The flypaper effect causes money to move from where it initially hits and sticks somewhere down the bureaucratic chain.

Lump sum grants are sometimes referred to as categorical grants.

Grants as a percent of total federal outlays have been increasing since the 1960s.

Which of the following is not a political jurisdiction?

A federal system consists of one level of government to provide public goods and services.

The Tiebout model can be summarized as "voting with the invisible hand."

When did the percentage of federal grants in state and local expenditures reach its peak?

_________ percent of Americans have different residences than they did the year before.

For the last 100 years,the level of government that has seen the largest increase in its percentage of expenditures is

A local public good

A circuit breaker is concerned with

A Tiebout model involves

__________ explores the roles of different level of government and the ways in which they relate to each other.

The assessed value of a home is

When a tax is based on the difference between the market value of the taxpayer's assets and liabilities,it is called

In Tiebout Model,the tax can vary across communities.

The Tiebout model offers a quasi-market solution to public good production and community development.What are some drawbacks to this model?

Disadvantages of decentralization are

Some cities have a relatively high residential property tax,while others have a low residential property tax.Give an explanation for this.

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Filters