Question 102pts

Two similar properties in two different cities pay property taxes based on different tax rates. The property with the lowest tax rate invariable pays less in taxes than the property with the highest statutory tax rate.

Group of answer choices

True

False

Question 62pts

Which of the following distinctions separates government user charges from taxes?

Group of answer choices

Taxes are spent for general government costs and are not earmarked; user charges are earmarked.

The federal government collects taxes but not user charges.

Taxes are collected by coercion; user charges are proceeds from voluntary exchange.

None of the above

Question 112pts

Which type ofpurchasebelow is most likely to be taxed by a state retail sales tax?

Group of answer choices

Placing an ad online for a community event

Professional services, e.g., services of a lawyer or accountant

Durable goods, e.g., a television set

Food purchased at a grocery, e.g., a loaf of bread

Flag question: Question 12

Question 122pts

Which of the following is most likely a common pool resource?

Group of answer choices

A local road

A public hospital

A public swimming pool

Water reservoir

Flag question: Question 13

Question 132pts

You are an administrator in a large new federal agency. You have great ideas for new services that your program could provide in the next fiscal year. In what stage of the budget process will you know how much money will actually be funded and appropriated to your program?

Group of answer choices

When the President presents the Executive Budget.

When the Congressional Budget Committee produces the Congressional Budget.

When both houses of Congress have passed authorization bills and they are approved by the President.

When both houses of Congress have passed appropriations bills and they are approved by the President.

Flag question: Question 14

Question 142pts

Which of the following isNOT an agency of the legislative branch?

Group of answer choices

Congressional Budget Office

Government Accountability Office

Office of Management and Budget

None of the above

Flag question: Question 15

Question 152pts

Which of the following is NOT an option for restraining mandatory spending?

Group of answer choices

Capping entitlements

Reducing benefits

Changing the eligibility requirements

Reducing the budget appropriation

Flag question: Question 16

Question 162pts

Which of the following would give evidence of horizontal equity?

Group of answer choices

A three-bedroom house in Bloomington has a property tax bill of $1,000; an equivalent three-bedroom house in Fort Wayne has a property tax bill of $5,000.

The property tax bill on my house was $800 in 1985. Even though I have not remodeled my property at all it is the same property my bill in 1998 is $3,000.

My next door neighbor's property tax bill is $2,000; my bill is $3,000, even though we receive exactly the same government services.

None of the above

Flag question: Question 17

Question 172pts

The largest single source of tax revenue to state government is:

Group of answer choices

The payroll tax

The real property tax

The retail sales tax

The individual income tax

Flag question: Question 18

Question 182pts

The largest single source of tax revenue to local governments is:

Group of answer choices

The payroll tax

The real property tax

The retail sales tax

The individual income tax

Flag question: Question 19

Question 192pts

Which of the following represents the largest federal government receipt (revenue)?

Group of answer choices

Social insurance taxes

Corporation income taxes

Estate and gift taxes

Individual income taxes

Flag question: Question 20

Question 202pts

Which of the following statements isNOT accurate?

Group of answer choices

Not all stateshave a general sales tax.

Not all states have individual income taxes.

The tax yielding more state revenue than any other state tax is the individual income tax.

None of the above; all are accurate.

Flag question: Question 21

Question 212pts

Tax credits, exemption, and exclusions all can be used by governments to reduce taxes. Consider a credit of $5,000, an exemption of $5,000, and an exclusion of $5,000, all to be added to the existing federal individual income tax. Which of the following statements is correct?

Group of answer choices

The revenue lost by the U.S. Treasury would be greatest for the exclusion, because such a provision removes transactions which would appear to be income from the tax base.

The personal exemption would save the individual taxpayer the most money because it would have the greatest relative increase over existing exemption levels (currently somewhat over $2,000).

The credit will cause greater revenue loss, because it takes effect after the application of the rate schedule and directly reduces tax liability.

All tax reducing impacts would be the same.

Flag question: Question 22

Question 222pts

Which of the following is true?

Group of answer choices

Taxable Income = Adjusted Gross Income - Personal Deductions

Taxable Income = Adjusted Gross Income - (Personal Deductions + Personal Exemptions + Credits)

Taxable Income = Adjusted Gross Income + (Personal Deductions + Personal Exemption)

Taxable Income = Adjusted Gross Income + Credits

Flag question: Question 23

Question 232pts

Payroll taxes (such as FICA) are characterized by all of the following EXCEPT:

Group of answer choices

The tax is levied on a narrow tax base.

Tax rates increase with increases in the tax base.

The tax is levied on the first dollar earned.

Tax proceeds are earmarked for specific purposes.

Flag question: Question 24

Question 242pts

Exemption of food purchases from a sales tax reduces regressivity because:

Group of answer choices

The percent of income spent on food generally falls as family income is higher.

Total food purchases decline as income rises.

Low income families spend more money on food than do high income families.

Food exemption does not reduce regressivity.

Flag question: Question 25

Question 252pts

Identify which of the following is key difference between value-added tax and retail sales tax

Group of answer choices

Retail sales tax is easier to deduct when purchases cross national boundaries

Value-added tax is closer to being a consumption tax than the retail sales tax

Value-added taxincreases the revenue elasticity of the federal tax base

Retail sales tax is easier to administer

Flag question: Question 26

Question 262pts

A common criticism of retail sales and excise taxes is:

Group of answer choices

They are progressive with respect to income.

They are general taxes with no allowed exemptions.

They are regressive with respect to income.

They tend to be shifted backward.

Flag question: Question 27

Question 272pts

Which of the following is the least accurate approach to property assessment?

Group of answer choices

Cost or summation approach

Market data or comparable sales approach

Income approach

None is universally better or worse overall than the others.

Flag question: Question 28

Question 282pts

Tax Increment Financing zones (or districts)encourage economic development by:

Group of answer choices

Reducing or eliminating state or local taxes paid by businesses locating in the TIF district.

Reserving revenues derived from the increases in assessed values (the tax increment ) to pay for infrastructure needs and debt service expenditures resulting from investment in the TIF district.

Cutting the interest rate on private debt issued on business investment increments in the TIF district.

Providing financing to help pay additional taxes when business expands in an impacted area.

Flag question: Question 29

Question 292pts

Circuit breakers may be generally preferable to exemptions as a means of property tax relief because:

Group of answer choices

They place costs directly on local governments.

They require annual reauthorization and thus allow greater control.

They are targeted.

They link property and sales taxes.

Flag question: Question 30

Question 302pts

In a traditional mass cyclical assessment system, which of the following occurs?

Group of answer choices

The value for a property parcel is adjusted each time the parcel is sold.

The value of all properties in the assessment jurisdiction will be realigned annually, according to estimated changes in the value of types of properties.

All properties in a jurisdiction are assessed in a single year and assessments do not change until the next reassessment year some years ahead.

Tax rates are frozen when property values change.

Flag question: Question 31

Question 312pts

Two cities are identical in all respects, except City A has an assessment ratio of 100% and City B has an assessment ratio of 25%. Both cities need to raise $1,000,000 in property tax revenues. The statutory property tax rates are:

Group of answer choices

Higher in City A than City B

Higher in City B than City A

Identical in both cities

Dependent on non-property tax revenues in each

Flag question: Question 32

Question 322pts

A residence in Sullivan County has a gross assessed value of $15,000. Its owner qualifies for an old age exemption of $1,000 and a homestead exemption of $2,000. The property tax rate is $5.00 per $100 of assessed value. What will the property tax bill equal on this property?

Group of answer choices

$750

$700

$650

$600

Flag question: Question 33

Question 332pts

Which of the following is an accurate statement about state lotteries?

Group of answer choices

Because of individual demand for gambling, lottery proceeds are stable from year to year and easily predictable.

Compared to other sources of state revenue, the cost of raising revenue from a lottery is quite low per dollar raised.

Because of broad participation rates through all income classes, the burden of the lottery is equivalent to that of a proportional tax.

Earmarking of lottery proceeds for specific purposes, i.e., for primary and secondary education, has not always increased state spending for those purposes.

Flag question: Question 34

Question 342pts

User charges target revenues produced to particular public services and individuals pay only for the services they actually use. Why doesn't all government funding come from such freewill transactions and market exchange?

Group of answer choices

User charges cannot provide a way to reflect demand for a service.

Some services have one or bothnon-appropriable characteristics (non-exhaustion and non-exclusion).

Some services are produced in systems showing economies of scale.

None of the above

Flag question: Question 35

Question 352pts

Performance budgets:

Group of answer choices

Link performance objectives to requests for funds

Do not focus on measurable activities

Classify the budget by goals or objectives (e.g., Protection of Persons and Property, Safe and Speedy Transportation)

None of the above

Flag question: Question 36

Question 362pts

Traditional budgets:

Group of answer choices

Lack structures for expenditure control

Distribute spending authority through organization chart structures

Have a multi-year focus for expenditure proposals

Require crosswalks to identify appropriations to agencies

Flag question: Question 37

Question 372pts

One specific requirement of the Government Performance Results Act of 1993 is:

Group of answer choices

To link budgeting requests to job descriptions

Develop five-year strategic plans

States requests for intergovernmental funds to be submitted to the Office of Management and Budget

None of the above

Flag question: Question 38

Question 382pts

Which of the following statements about performance-based budgeting as mandated by the Government Performance Results Act (GPRA) isNOT accurate?

Group of answer choices

GRA requires federal agencies to develop annual performance plans.

GPRA requires federal agencies to develop five-year strategic plans.

State agencies link their Block Grant requests to strategic plans.

Federal agencies submit reports on their previous year performance.

Flag question: Question 39

Question 392pts

Crucial to performance-based budgeting is:

Group of answer choices

That all levels of the organization engage in mission definition exercises

The strategic plan include a vision statement

The development of a performance measurement system

That all resources needed be cost estimated

Flag question: Question 40

Question 402pts

The precept that people who are equals in all relevant ways should be taxed equally is known as:

Group of answer choices

Nondistortionary taxation

Horizontal equity

Specific equalitarianism

Vertical equity

Flag question: Question 41

Question 412pts

Select the one statement that is true about budget formats.

Group of answer choices

Line-item budgets emphasize planning,performance budgets emphasize control,program budgets emphasize planning.

Line-item budgets are better management tools than performance or program budgets.

Line-item budgets emphasize control,performance budgets emphasize management,and program budgets emphasize planning.

Program budgetsare theleast costly of the three budget formats in terms of the staff time used and the level of expertise required to prepare the budget.

Flag question: Question 42

Question 422pts

The best indicator of the planning function of programbudgets is

Group of answer choices

Their ability to compare performance across two budget years

Their five-year budget horizon

The emphasis on programs

Their concern with planning every budget request in advance

Flag question: Question 43

Question 432pts

________ budgets use an incremental approach to budgeting.

Group of answer choices

program budgets

performance-based budgets

zero-based budgets

line-item budgets

Flag question: Question 44

Question 442pts

When evaluating taxing fairness, we use two general equity standards: benefits _____ and ______to pay.

Group of answer choices

received,ability

maximized, ability

given, ordered

granted, asked

Flag question: Question 45

Question 452pts

One statement about income definition is true.

Group of answer choices

Tax statutes clearly define income and list all transactions that together further define income.

Tax statutes are ambiguous about the definition of income for tax purposes.

Tax statutes clearly define income for tax purposes.

Tax statutes do not define income,but listtransactions that produce income for tax purposes.

Flag question: Question 46

Question 462pts

When are user charges appropriate?

Group of answer choices

When the revenues produced are needed to subsidize other services.

When devised as an intergovernmental transfer.

When structured in a way that effectively competes with the private sector.

When governments can exclude nonpaying individuals from enjoying the service provided.

Flag question: Question 47

Question 472pts

A feature that distinguishes a performance budget from other budget classification structures is:

Group of answer choices

unit cost estimates for tasks or activities

quantitative performance objectives for agencies and departments

cost estimates for each agency

measurement of worth of agency functions to society

Flag question: Question 48

Question 482pts

The budget process which emphasizes the achievement of goals and competition between alternatives is:

Group of answer choices

incremental budgeting

performance budgeting

program budgeting

target-based budgeting

Flag question: Question 49

Question 492pts

Outcomes are different than outputmeasures in that

Group of answer choices

outcome measures are more difficult to develop

outcome measures are specific to each organization

outcomes measure effectiveness and quality;outputs measure efficiency and process

all the above

Flag question: Question 50

Question 502pts

Which of the following would ordinarilyNOTbe taxed in a local property tax?

Group of answer choices

land subdivided for residential construction

an apartment building

a shopping center

a private collection of valuable paintings