GOV chapt. 11

Selective sales taxes in Texas are: applied to liquor sales applied to real estate sales. not considered a hidden tax. All of the above are true.

applied to liquor sales

Declining marginal propensity to consume means: as income increases, spending increases proportionately. as income increases, a smaller percentage is spent on consumer goods. as income increases, a larger percentage is spent on consumer goods. as income decreases, spending remains constant as a percentage of income.

as income increases, spending increases proportionately.

At the beginning of each legislative session, the _________ reports to the legislature the total amount of revenues expected from current taxes and other sources. secretary of state comptroller of public accounts state clerk state auditor

comptroller of public accounts

Texas's largest single individual revenue source is: general sales tax. selective sales tax. federal funds gross-receipts taxes.

federal funds

The most common ability-to-pay taxes are levied on all of the following except: property sales income gasoline

gasoline

The State Board of Education does all of the except: makes routine managerial decisions. establishes guidelines for operating public schools. requires cost accounting and financial reports from local districts. sets curriculum standards.

makes routine managerial decisions.

All of the following are seldom taxed with the exception of: stocks real estate bonds securities

real estate

Tax rates that place more of a burden on low- and middle-income taxpayers than on wealthier ones care called: marginal propensity tax rates. progressive tax rates. regressive tax rates. non-reformist taxes.

regressive tax rates.

Regulatory taxes are sometimes called a(n): sin tax use tax selective tax objected tax

sin tax

An excise or "sin" tax is levied on the sale, manufacture, or use of all of the following except: snacks cigarettes liquor gasoline

snacks

Property taxes were once the major source of state revenue until: the Progressive Era the war on property the Panic of 1900 the Great Depression of the 1930s

the Great Depression of the 1930s

Ad valorem taxes may not be applied to which of the following? Land Buildings Personal property the sale of real estate

the sale of real estate

In the battle over taxation, one of the most intense issues is: what should be taxed. the amounts per unit of taxable item or activity. the objective or activity taxed. payment by a large number of taxpayers.

what should be taxed.

For the 2012-2013 biennium, Texas will receive approximately __________ in federal funds, which represents 30 percent of state revenue. $71 billion $26 billion $41 billion $35 billion

$71 billion

Adjusting for population and inflation, state spending grew at an average annual rate of _________ over the last 20 years. 2.5% 0.8% 4% 20%

0.8%

The general sales tax yielded what percent of the state's revenue? 6.25% 24.8% 4.5% 3.4%

24.8%

During the 2012-2013 fiscal year, what percent of estimated Texas revenues came from the federal government? 44% 39% 50% 25%

39%

What percentage of Americans pays no income taxes at all? 15% 25% 40% 60%

40%

During the 2012-2013 fiscal year, ________ of estimated Texas revenues are from state taxes? 35% 44% 50% 25%

44%

Texas ranked __________ among the 50 states in overall per capita spending. 49th 44th 47th 40th

47th

The Texas's ranking of population older than 25 with a high school diploma is: 44th 50th 43rd 45th

50th

Individual and corporate income taxes immediately became the national government's major source of funding and today, they constitute approximately _________ of federal tax revenue. 56% 35% 26% 45%

56%

What is Texas's general sales tax on retail purchases? 6.25% 7.25% 8.25% 9.25%

6.25%

It is through what process that the legislature legally authorizes the state to spend money to provide its various programs and services? State spending Revenue bonds Appropriations General obligation bonds

Appropriations

The gasoline tax is an example of what type of tax? Progressive Retrogressive Benefits received sin tax

Benefits received

Which of the following taxes is not considered one of the most effective at raising revenue? Property General sales Narrowed based Income

Narrowed based

The Texas state budget is exceeded only by those of California and: Florida New York Arizona Pennsylvania

New York

Which of the following does not fall under the category of the benefits-received principle? The 20-cent-per-gallon tax on gasoline License plate fees Tuition at state universities Local school taxes

Local school taxes

Which of the following income groups in Texas paid the highest percentage in effective taxes? Lower Middle Upper middle Upper

Lower

Ad valorem means: "according to the location." "according to the homestead." "according to value." "according to the square mileage."

"according to value."

Which tax may be applied to two major types of property including real property and personal property? Ad valorem Severance taxes Selective taxes Gross-receipt taxes

Ad valorem

Which of the following states does not collect a small percentage of their resident's income than Texas? Colorado New Hampshire South Dakota Alaska

Alaska

According to the Davis essay, the slow decrease of support from the state has led many colleges and universities to rely more on: part-time faculty. increased class sizes. offering fewer courses. All of the above are true.

All of the above are true.

Which of the following is an example of tax shifting? As taxes on businesses rise, businesses raise their prices As property taxes increase, landlords raise rents Businesses making their taxes consumer taxes All of the above are true.

All of the above are true.

__________ is a tax designed to be paid by a large number of taxpayers. Tax rate Tax base Broad-based tax Regulatory tax

Broad-based tax

Which of the following is not true about recent state budgets? Each budget is a record for spending. State costs tend to go up due to inflation. State costs have accelerated due to population increases. Demands for state services have decreased over time.

Demands for state services have decreased over time.

In 1949, which law increased state funding and established the Texas Education Agency (TEA), which carries out the state's educational program. No Child Left Behind Gilmer Aikin Top 10 percent plan Texas Education Agency

Gilmer Aikin

What kinds of taxes are included in the retail prices of the goods and services? General sales tax Selective sales tax Hidden taxes Gross receipt tax

Hidden taxes

Which of the following is incorrect? Excessive property taxes could discourage construction and repair of buildings. High income taxes can discourage general economic activity. Raising the tax rate guarantees increased revenues. To raise necessary revenue, a tax must not discourage too much of the activity that produces the income.

High income taxes can discourage general economic activity.

General-obligation bonds cannot be used for which of the following? Higher education bonds financed by tuition revenue Prison construction Real estate programs for veterans Water development

Higher education bonds financed by tuition revenue

Which of the following did the Trans-Texas Corridor not include? Superhighways Railways Utility corridors Housing

Housing

Which law "recaptured" property tax revenue from property-wealthy school districts and distributed those in property-poor districts, in an effort to equalize the financing of all districts throughout Texas? Gilmer-Aiken law No Child Left Behind Robin Hood plan School Equity

Robin Hood plan

The income tax became available to the national government with the ratification of which amendment to the United States Constitution? Thirteenth Fourteenth Fifteenth Sixteenth

Sixteenth

Which of the following has occurred because of Texas's state government-imposed mandates on local governments? Both state and local taxes have remained high. State taxes have remained high, but local taxes are lower than in many states. State taxes have remained low, but local taxes are higher than in many states. Texas does not impose unfunded mandates on local governments.

State taxes have remained low, but local taxes are higher than in many states.

__________ advocate that taxes on higher-income individuals should be kept low to allow them to save and invest to stimulate the economy. Proponents of progressive taxes Supply-siders Proponents of ability to pay Consumer-economic-siders

Supply-siders

Which of the following is not a common political rationalization for taxing various groups differently? To regulate their behavior To tax them according to the benefits they receive To tax them according to their ability to pay To appease the general public back home

To appease the general public back home

TxDOT planned to use comprehensive development agreement with private entities to develop a highly ambitious and controversial 50-year program to supplement existing highways. This program was called the: Trans-Continental Corridor. Trans-national Corridor. Trans-Texas Corridor. Trans-Texas Mexico Corridor.

Trans-Texas Corridor.

Which is not a level of state involvement in health care? When it provides health care for certain special populations When it acts as a public health insurer as it does with Medicaid and pays for medical services offered by private practitioners When it acts as a regulator and buyer of private health insurance When it advocates socialized medicine

When it advocates socialized medicine

When did the state of Texas initiate the top 10 percent plan? When the Fifth Circuit Court of Appeals ruled that race could not be considered in affirmative action admission policies When the colleges and universities noticed a decline in the enrollment of women and minority ethnic groups When colleges and universities realized they failed to meet standard admission criteria When Latino, low income, and rural student admission to state universities began to stabilize

When the Fifth Circuit Court of Appeals ruled that race could not be considered in affirmative action admission policies

In 1931, Texas adopted a tax on: cigarettes beer distilled spirits ammunition

cigarettes

The most costly service in Texas is: health and human services education transportation crime and punishment

education

Broadly based taxes collected on the retail price of most items are called: general sales tax ad valorem tax user tax hidden tax

general sales tax

Trading votes among legislators, especially to fund local projects to benefit their constituents, is called: pork barreling. earmarking. raiding. logrolling.

logrolling.

Property taxes are the major source of revenue for virtually all of the following governments except: national government special districts cities counties

national government

What taxes are the major source of revenue for virtually all local government, cities, counties, and special duties? property taxes ad valorem taxes severance taxes selective sales taxes

property taxes

All the following items have a hidden tax included in their prices except: cigarette alcohol gasoline real estate

real estate

A tax imposed with the intent of exerting social or economic control by reducing taxes on approved behaviors or imposing higher taxes on undesirable activities is: a broad-based tax regulatory tax tax rate tax base

regulatory tax

State bonds that are repaid with the revenues from the service they finance are called: proprietary bonds. general obligation bonds. revenue bonds. None of the above is true; Texas can never borrow money.

revenue bonds.

A _________ is a tax on raw material (such as oil and natural gas) when they are extracted from their natural state. general sales tax selective sales tax severance tax hidden tax

severance tax

Which of the following has the authority to determine the property tax rate on real property in a county? the county the commissioners courts trustee boards the central appraisal district

the commissioners courts