2306 Chapter 12 – Flashcards
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1. (p. 307) On average, what percentage of state and local government revenue across the country comes from state and local sources?
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D, 75 percent
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2. (p. 307) What percentage of the Texas state budget comes from the federal government?
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B. 34 percent
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About 60% of the money that Texas receives from the federal government is spent on
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A. Health and human services
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4. (p. 307) For fiscal year 2015, the Texas state budget was about $___ billion.
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C. 100
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5. (p. 308) Which of the following is a fundamental principle governments use to justify providing services to the public?
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B. nonexhaustion
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6. (p. 308) In Texas, citizens can be excluded from all of the following for nonpayment, EXCEPT for
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B. education
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7. (p. 309) What is the primary source of revenue for state governments?
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C. taxes on citizens
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8. (p. 309) Which of the following is the measure of the wealth of a state or its ability to raise revenues relative to all other states?
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D. tax capacity
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9. (p. 310) What is the primary point missed by the per capita tax measure?
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A. tax exporting
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10. (p. 310) Which of the following states had the highest taxable resources per capita in 2011?
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C. California
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11. (p. 310) In a comparison of the 15 most populous states, where did Texas rank in the amount of revenue raised per $1,000 of personal income?
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C. near the lowest
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12. (p. 310) Which of the following is a consumer tax?
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A. sales tax B. tobacco tax C. motor vehicle sales tax D. All of these answers are correct.
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13. (p. 311) Which of the following categories of taxes contributed the least to the Texas treasury in 2011-2012?
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A. insurance occupation
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14. (p. 311) Which of the following categories of taxes contributed the most to the Texas treasury in 2011-2012?
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D. sales
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15. (p. 312) Almost three-quarters of the states that do not have a personal income tax system are
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A. among the "Terrible Ten"
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16. (p. 313) Which category of Texans, by income, pays the highest amount of sales and excises taxes as a percentage of income?
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A. lowest 20%
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17. (p. 313) Which category of Texans, by income, pays the lowest amount of sales and excises taxes as a percentage of income?
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D. second highest 20%
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18. (p. 314) ________ refers to the items that are subject to taxation.
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B. The tax base
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19. (p. 314) A sales tax, especially when food and medicine are subject to the tax, can be described as what type of tax?
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B. regressive
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20. (p. 315) Tax shifting could result in any of the following EXCEPT
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C. higher profits to owners
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21. (p. 316) Which of the following taxes CANNOT be shifted?
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A. personal income tax
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22. (p. 316) What are the two primary sources of revenue for local government in Texas?
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C. local sales tax and property tax
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23. (p. 317) Local governments collect and pay for ________ the cost of government in Texas.
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C. about one-half
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24. (p. 318) Which level of government is most heavily dependent on service charges and fees to finance their services?
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D. city
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25. (p. 318) The greatest source of nontax revenue in Texas comes from
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A. fees, fines, licenses, and penalties.
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26. (p. 320) How are school districts funding their increased share of the cost of local education?
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A. higher local property tax
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27. (p. 321) Health and human services is funded primarily with
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D. federal grants
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28. (p. 321) In recent years, most of the growth in state expenditures in Texas has been driven by
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B. population increases
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29. (p. 322) During the 1980s there were 10 special sessions of the Texas legislature to correct revenue shortfalls. What was the cause of these shortfalls?
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C. declining price of oil
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30. (p. 322) What is meant by income-elastic taxes?
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A. taxes that change quickly relative to economic conditions
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31. (p. 322) When the price of oil experiences a prolonged price increase,
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A. the Texas economy improves and Texas state revenues increase.
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32. (p. 323) How many states do not have any form of personal income tax?
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B. 7
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33. (p. 325) What is the second-largest source of revenue for Texas state government?
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D. franchise fee
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The principle of exclusion, under which government services such as fire protection fall, means which of the following?
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The government does not deny services to individuals based on whether they pay for the service.
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Pumping water from aquifers would qualify as which of the following?
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a regulatory good
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Which of the following is the primary problem with the straight per capita tax measurement?
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It does not account for exported taxes.
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Which of the following could not be used to describe the different types of taxes levied in Texas?
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......
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Which of the following is the only type of tax not susceptible to the process of tax shifting?
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personal income tax
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Which of the following is the single largest source of revenue for school districts?
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the property tax
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What percentage of the moneys in the general fund of the Texas budget are nonrestricted and available for change?
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17.2%
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In 1992, Texas voters approved a constitutional amendment that prevents the legislature from doing which of the following without voter approval?
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enacting an income tax
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Which of the following business entities are exempt from paying the franchise fee in Texas?
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entities with revenues of $300,000 or less
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Raising the sales tax on which of the following types of goods or services would do the most to make the sales tax more regressive?
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food
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Local governments collect taxes from two primary sources: property tax and which of the following?
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local sales tax
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In most states, three items consume most of the state budget. Which of the following is NOT one of those three items?
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public safety and criminal justice
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In which of the following sectors is most of the federal money that is supplied to Texas by the federal government spent?
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Health and human services
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Which of the following taxes is based more on the ability to pay than on the benefit received?
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federal income tax
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Texas regulates local sales taxes in which of the following ways?
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Local sales tax is fixed by state law at no more than 2 percent of the value of sales.
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During the 1980s, there were 10 special sessions of the legislature to attempt to correct revenue shortfalls. These shortfalls were caused primarily by which of the following?
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drops in oil prices
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Which of the following describes why it might be especially difficult, in a political sense, to expand the sales tax base in Texas to include legal and financial services?
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A big portion of the Texas legislature is composed of attorneys.
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If a state's tax capacity is 100, its tax effort would most ideally be which of the following?
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100
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In terms of tax shifting, businesses might respond to a state tax rate increase in three general ways. Which of the following is not one of these?
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by shifting the cost to the state through decreased output
