Question 1

A high school graduate near the top of his or her class who took the recommended curriculum and who meets economic need guidelines can have his or her college tuition at state institutions paid from the

Accepted Answer

A)   Teach for Texas Fund.
B)   Texas Tomorrow Fund.
C)   Available University Fund.
D)   Texas Grant Program (Toward Excellence, Access, and Success) . D

Question 2

Most major agency purchases are made through or are supervised by the

Accepted Answer

A)   Council on Competitive Government.
B)   Comptroller of Public Accounts.
C)   Texas Procurement and Support Services.
D)   State Auditor's Office. C

Question 3

More than half of the expenditures in Texas are paid from

Accepted Answer

A)   federal grants-in-aid.
B)   the general revenue fund.
C)   dedicated funds.
D)   general obligation and revenue bonds. C

Question 4

Most non-farm jobs in Texas are in the general area of

Accepted Answer

A)   manufacturing.
B)   service providing.
C)   food processing.
D)   local government.

Question 5

Identify and describe the various taxes imposed by the state of Texas to raise revenues. Identify the population that each tax targets and an approximation of which taxes raise the most revenues.

Accepted Answer

The answer of Identify and describe the various taxes imposed...

Question 6

Texas may accrue a small amount of state debt when it

Accepted Answer

A)   relies on federal funding.
B)   instituted a state-wide lottery system.
C)   passes a supplemental budget.
D)   issues general-obligation or revenue bonds.

Question 7

Taxes that rely more heavily on revenues from higher incomes are known as

Accepted Answer

A)   flat taxes.
B)   progressive taxes.
C)   regressive taxes.
D)   nominal taxes.

Question 8

Which of the following task(s) does the Comptroller's office oversee?

Accepted Answer

A)   Preparing the state's budget
B)   Issuing checks to pay state obligations
C)   Appropriating lottery funds
D)   Selling general obligation bonds

Question 9

The state of Texas provides workers compensation under monies collected from

Accepted Answer

A)   payroll taxes.
B)   severance taxes.
C)   selective sales taxes.
D)   general obligation bonds.

Question 10

Describe the system of higher education funding at Texas colleges and universities. Explain how funding for community colleges differs from that of four-year institutions. Identify some of the controversies surrounding higher education funding.

Accepted Answer

The answer of Describe the system of higher education funding...

Question 11

Under the Robin Hood Plan, a Chapter 41 school is a identified as a

Accepted Answer

A)   wealthy school required to help support a poor school.
B)   poor school eligible to receive money from a wealthy school.
C)   school that is not affected by the Robin Hood formula.
D)   state exempt charter school.

Question 12

The fiscal biennium in Texas begins on

Accepted Answer

A)   July 1 of odd numbered years.
B)   January 1 of even numbered years.
C)   September 1 of odd numbered years.
D)   October 1 of even numbered years.

Question 13

The most significant, revenue producing, tax in Texas is the

Accepted Answer

A)   general sales tax.
B)   selective sales tax.
C)   business franchise tax.
D)   gross receipts tax.

Question 14

In Texas, projected revenue levels are provided to the governor and legislature by the

Accepted Answer

A)   State Auditor's Office.
B)   State Comptroller of Public Accounts.
C)   General Accounting Office.
D)   Governor's Office of Budget and Planning.

Question 15

The traditional Texas fiscal policy is the achievement of a balanced budget through

Accepted Answer

A)   low taxes and low levels of public spending.
B)   high taxes and low public spending.
C)   high taxes and high public spending.
D)   low taxes and high public spending.

Question 16

Texas relies heavily on non-tax revenues to meet its fiscal obligations. Identify and describe these non-tax sources of revenue. Which of these non-tax revenues could Texas least afford to lose, and why?

Accepted Answer

The answer of Texas relies heavily on non-tax revenues to...

Question 17

Which state program in Texas does not receive substantial federal funding?

Accepted Answer

A)   Public education
B)   Highways
C)   Teacher retirement
D)   Public assistance

Question 18

According to the Texas Transportation Commission, the newest means of financing Texas highways is the use of

Accepted Answer

A)   money from the sale of bonds.
B)   money collected from tolls.
C)   increased gas taxes.
D)   a state income tax.

Question 19

Where does Texas rank among the states in the tax burden on its citizens?

Accepted Answer

A)   Near the top
B)   About twentieth
C)   About thirty-fifth
D)   Near the bottom

Question 20

The "pay-as-you-go" system means that the Texas Legislature must

Accepted Answer

A)   pay its bills on time.
B)   pass a surplus budget.
C)   borrow to pay its bills.
D)   not pass a deficit budget.

Exam 11: Finance and Fiscal Policy