Deck 12: Public Policy in Texas

Question 1

During the 2014-2015 fiscal year,what percentage of estimated Texas revenues came from the federal government?

A)44
B)35.5
C)50
D)25

Answer 1

B

Question 2

Which of the following has occurred because of Texas's state government-imposed mandates on local governments?

A)Both state and local taxes have remained high.
B)State taxes have remained high,but local taxes are lower than in many states.
C)State taxes have remained low,but local taxes are higher than in many states.
D)Texas does not impose unfunded mandates on local governments.

Answer 2

C

Question 3

All the following items have a hidden tax included in their prices except

A)cigarettes.
B)alcohol.
C)gasoline.
D)real estate.

Answer 3

D

Question 4

In 1931,Texas adopted a tax on

A)cigarettes.
B)beer.
C)distilled spirits.
D)ammunition.

Question 5

The income tax became available to the national government with the ratification of which amendment to the U.S.Constitution?

A)Thirteenth
B)Fourteenth
C)Fifteenth
D)Sixteenth

Question 6

Texas's largest single individual revenue source is

A)general sales tax.
B)selective sales tax.
C)federal funds.
D)gross receipts taxes.

Question 7

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

A)57
B)35
C)26
D)45

Question 8

Property taxes are the major source of revenue for virtually all of the following governments except

A)national government.
B)special districts.
C)cities.
D)counties.

Question 9

The Texas state budget is exceeded only by those of California and

A)Florida.
B)New York.
C)Arizona.
D)Pennsylvania.

Question 10

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

A)2.5
B)0.8
C)4
D)20

Question 11

Which taxes may be applied to two major types of property including real property and personal property?

A)Ad valorem
B)Severance
C)Selective
D)Gross receipt

Question 12

What is Texas's general sales tax on retail purchases?

A)6.25 percent
B)7.25 percent
C)8.25 percent
D)9.25 percent

Question 13

Broad-based taxes collected on the retail price of most items are called

A)general sales taxes.
B)ad valorem taxes.
C)user taxes.
D)hidden taxes.

Question 14

The general sales tax yielded what percentage of the state's revenue?

A)6.25
B)26.2
C)4.5
D)3.4

Question 15

What taxes are the major source of revenue for virtually all local government,cities,counties,and special duties?

A)Property
B)Ad valorem
C)Severance
D)Selective sales

Question 16

Property taxes were once the major source of state revenue until the

A)Progressive Era.
B)war on property.
C)Panic of 1900.
D)Great Depression of the 1930s.

Question 17

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

A)general sales
B)selective sales
C)severance
D)hidden

Question 18

Selective sales taxes in Texas are

A)applied to liquor sales.
B)applied to real estate sales.
C)not considered a hidden tax.
D)all of these choices are true.

Question 19

Which of the following is not true about recent state budgets?

A)Each budget is a record for spending.
B)State costs tend to go up due to inflation.
C)State costs have accelerated due to population increases.
D)Demands for state services have decreased over time.

Question 20

What kinds of taxes are included in the retail prices of the goods and services?

A)General sales tax
B)Selective sales tax
C)Hidden taxes
D)Gross receipt tax

Question 21

Which of the following is incorrect?

A)Excessive property taxes could discourage construction and repair of buildings.
B)High income taxes can discourage general economic activity.
C)Raising the tax rate guarantees increased revenues.
D)To raise necessary revenue,a tax must not discourage too much of the activity that produces the income.

Question 22

__________ is a tax designed to be paid by a large number of taxpayers.

A)Tax rate
B)Tax base
C)Broad-based tax
D)Regulatory tax

Question 23

The most common ability-to-pay taxes are levied on all of the following except

A)property.
B)sales.
C)income.
D)gasoline.

Question 24

Which of the following is an example of tax shifting?

A)As taxes on businesses rise,businesses raise their prices
B)As property taxes increase,landlords raise rents
C)Businesses making their taxes consumer taxes
D)All of these choices are true.

Question 25

All of the following are seldom taxed with the exception of

A)stocks.
B)real estate.
C)bonds.
D)securities.

Question 26

Which of the following does not fall under the category of the benefits-received principle?

A)The 20-cent-per-gallon tax on gasoline
B)License plate fees
C)Tuition at state universities
D)Local school taxes

Question 27

What percentage of Americans pays no income taxes at all?

A)15
B)25
C)40
D)60

Question 28

Tax rates that place more of a burden on low- and middle-income taxpayers than on wealthier ones are called

A)marginal propensity tax rates.
B)progressive tax rates.
C)regressive tax rates.
D)nonreformist taxes.

Question 29

An excise or "sin" tax is levied on the sale,manufacture,or use of all of the following except

A)snacks.
B)cigarettes.
C)liquor.
D)gasoline.

Question 30

In the battle over taxation,one of the most intense issues is

A)what should be taxed.
B)the amounts per unit of taxable item or activity.
C)the objective or activity taxed.
D)payment by a large number of taxpayers.

Question 31

Which of the following is not a common political rationalization for taxing various groups differently?

A)To regulate their behavior
B)To tax them according to the benefits they receive
C)To tax them according to their ability to pay
D)To appease the general public back home

Question 32

Which of the following income groups in Texas paid the highest percentage in effective taxes?

A)Lower
B)Middle
C)Upper middle
D)Upper

Question 33

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)a broad-based tax.
B)regulatory tax.
C)tax rate.
D)tax base.

Question 34

The gasoline tax is an example of what type of tax?

A)Progressive
B)Retrogressive
C)Benefits-received
D)Sin

Question 35

Declining marginal propensity to consume means

A)as income increases,spending increases proportionately.
B)as income increases,a smaller percentage is spent on consumer goods.
C)as income increases,a larger percentage is spent on consumer goods.
D)as income decreases,spending remains constant as a percentage of income.

Question 36

Which of the following has the authority to determine the property tax rate on real property in a county?

A)The county
B)The commissioners' courts
C)Trustee boards
D)The central appraisal district

Question 37

Ad valorem taxes may not be applied to which of the following?

A)Land
B)Buildings
C)Personal property
D)The sale of real estate

Question 38

Regulatory taxes are sometimes called a(n)

A)sin tax.
B)use tax.
C)selective tax.
D)objected tax.

Question 39

Ad valorem means

A)"according to the location."
B)"according to the homestead."
C)"according to value."
D)"according to the square mileage."

Question 40

Which of the following taxes is not considered one of the most effective at raising revenue?

A)Property
B)General sales
C)Narrowed based
D)Income

Question 41

Which of the following states collects a smaller percentage of their resident's income than Texas?

A)Colorado
B)New Hampshire
C)South Dakota
D)Alaska

Question 42

General obligation bonds cannot be used for which of the following?

A)Higher education bonds financed by tuition revenue
B)Prison construction
C)Real estate programs for veterans
D)Water development

Question 43

When did the state of Texas initiate the top 10 percent plan?

A)When the Fifth Circuit Court of Appeals ruled that race could not be considered in affirmative action admission policies
B)When the colleges and universities noticed a decline in the enrollment of women and minority ethnic groups
C)When colleges and universities realized they failed to meet standard admission criteria
D)When Latino,low-income,and rural student admission to state universities began to stabilize

Question 44

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

A)Trans-Continental Corridor.
B)Trans-national Corridor.
C)Trans-Texas Corridor.
D)Trans-Texas Mexico Corridor.

Question 45

At the beginning of each legislative session,the _________ reports to the legislature the total amount of revenues expected from current taxes and other sources.

A)secretary of state
B)comptroller of public accounts
C)state clerk
D)state auditor

Question 46

It is through what process that the legislature legally authorizes the state to spend money to provide its various programs and services?

A)State spending
B)Revenue bonds
C)Appropriations
D)General obligation bonds

Question 47

Federal funds,which account for 39 percent of the TDOT budget,have been attached to allow all of the following except

A)​enforcing anti-texting laws.
B)​clean air regulations.
C)​a minimum drinking age of 18.
D)​none of these choices is true.

Question 48

Which of the following did the Trans-Texas Corridor not include?

A)Superhighways
B)Railways
C)Utility corridors
D)Housing

Question 49

Which method is most often employed to recapture property tax dollars for poorer school districts?

A)Combing school districts
B)Busing
C)State redistribution
D)School reassignment

Question 50

In 1949,which law increased state funding and established the Texas Education Agency (TEA),which carries out the state's educational program?

A)No Child Left Behind
B)Gilmer Aikin
C)Top 10 percent plan
D)Texas Education Agency

Question 51

The State Board of Education does all of the following except

A)making routine managerial decisions.
B)establishing guidelines for operating public schools.
C)requiring cost accounting and financial reports from local districts.
D)setting curriculum standards.

Question 52

__________ advocate that taxes on higher-income individuals should be kept low to allow them to save and invest to stimulate the economy.

A)Proponents of progressive taxes
B)Supply-siders
C)Proponents of ability to pay
D)Consumer-economic-siders

Question 53

Contrast progressive and regressive taxation.Construct a supported argument advocating one or the other.​

Question 54

Trading votes among legislators,especially to fund local projects to benefit their constituents,is called

A)pork barreling.
B)earmarking.
C)raiding.
D)logrolling.

Question 55

What percentage of the 4.6 million Texans living in poverty receive welfare benefits?​

A)​3
B)​80
C)​60
D)​20

Question 56

​How has the financial approach of the state toward education impacted schools and universities in Texas? What are the potential long-term consequences of underfunding education?

Question 57

The most costly service in Texas is

A)health and human services.
B)education.
C)transportation.
D)crime and punishment.

Question 58

Which is not a level of state involvement in health care?

A)When it provides health care for certain special populations
B)When it acts as a public health insurer as it does with Medicaid and pays for medical services offered by private practitioners
C)When it acts as a regulator and buyer of private health insurance
D)When it advocates socialized medicine

Question 59

State bonds that are repaid with the revenues from the service they finance are called

A)proprietary bonds.
B)general obligation bonds.
C)revenue bonds.
D)none of these choices is true;Texas can never borrow money.

Question 60

Explain the concept of ability to pay and why it is important for understanding taxation.​

Question 61

How does the data collected on public opinion toward public education funding suggest complex,even contradictory,sentiments?

Question 62

Describe the role of the THECB in Texas.​

Question 63

Contrast the purpose of CHIP,Medicare,and Medicaid.​

Question 64

Contrast TANF benefits in Texas with the national average.How does the rate of insured in Texas differ from the national average? What are the potential long-term costs of these differences?​

Question 65

What are the issues surrounding curriculum in Texas?​

Question 66

Describe the two major views of the cause of poverty and how these views may impact a person's support for welfare programs.​