Question 1

"Fiscal capacity" of a nation, state, or local school district may include income, wealth, or other measures of economic capability.

Accepted Answer

Fiscal capacity encompasses various measures of economic capability including income, wealth, and other factors that affect a government's ability to generate revenue and provide public goods and services.

Question 2

The "fiscal position" is the same as "fiscal capacity."

Accepted Answer

The "fiscal position" refers to a government's current financial situation, while "fiscal capacity" refers to its ability to generate revenue or borrow money in the future. They are related concepts, but not the same thing.

Question 3

Common measures of fiscal capacity of nations may include gross domestic product (GDP) and gross national income (GNI)

Accepted Answer

Yes, GDP and GNI are common measures of fiscal capacity of nations.

Question 4

The United States has historically been an economic power because it is rich in both human and physical resources.

Accepted Answer

The United States has a large population of skilled workers and abundant natural resources, which contribute to its economic power.

Question 5

Gross domestic product (GDP) is the total output produced within a country during a year.

Accepted Answer

GDP is defined as the total monetary value of all the final goods and services produced within a country's borders in a specific time period, usually a year.

Question 6

The United States is the richest developed country in the world.

Accepted Answer

The answer of The United States is the richest developed...

Question 7

Latin America's economic growth has not matched that of North America over the past 1000 years.

Accepted Answer

Latin America's economic growth has lagged behind that of North America for centuries, with factors such as colonization, slavery, and political instability playing a role in impeding the region's development.

Question 8

Per capita personal income is the most common method used to measure state fiscal capacity.

Accepted Answer

Per capita personal income is widely used as a measure of a state's fiscal capacity as it provides a standard measure of the income available to residents of the state.

Question 9

The per capita personal income of Connecticut is five times as great as that of Mississippi.

Accepted Answer

As of the latest data, while Connecticut does have a higher per capita personal income compared to Mississippi, it is not five times greater. The difference is significant but not to that extent.

Question 10

Personal income per student in average daily attendance (ADA) is a valid measure of fiscal capacity for educational purposes.

Accepted Answer

Personal income per student in average daily attendance (ADA) is a valid measure of fiscal capacity for educational purposes as it indicates a community's ability to support its schools financially. Higher personal income per student means the community has a greater ability to contribute towards education funding.

Question 11

Local fiscal capacity in states is normally measured by an index of property wealth and income.

Accepted Answer

The answer of Local fiscal capacity in states is normally...

Question 12

Accurate measurement of property wealth is a very accurate science.

Accepted Answer

Accurate measurement of property wealth involves various factors such as property condition, location, local market conditions, and many other factors that can impact the value. Therefore, it is not a completely accurate science and can have some degree of subjectivity.

Question 13

"Fiscal effort" is the ratio of revenue (or expenditures) to the tax base

Accepted Answer

Fiscal effort is indeed the ratio of revenue or expenditures to the tax base. It is used to measure the amount of effort a government puts in to generate revenue or spend it.

Question 14

The claim that the United States spends more money on elementary and secondary schools than any other country is quite accurate.

Accepted Answer

The United States spends a significant amount on education, but other countries, such as Luxembourg and Switzerland, spend more per student on elementary and secondary education.

Question 15

"Fractionalization" is a quantifiable measure of diversity for a specified variable in a population of a nation or state.

Accepted Answer

Fractionalization is a quantifiable measure of diversity that examines the dispersion of a specific variable (such as ethnicity, language, religion, etc.) in a population of a nation or state. It is usually represented as a decimal between 0 and 1, with higher values indicating a greater degree of diversity or fragmentation.

Question 16

According to Alesina and Glaeser, fractionalization by race and religion have nothing to do with tax effort to support public education.

Accepted Answer

Alesina and Glaeser found that fractionalization by race and religion are negatively correlated with tax effort to support public education, meaning that the more fractionalized a society is in terms of race and religion, the less likely they are to put effort into funding public education through taxes.

Question 17

Majority ethnic groups will typically tax themselves more to help other poorer ethnic groups gain educational opportunity for their children.

Accepted Answer

Studies have shown that majority ethnic groups often exhibit in-group preference, leading to less willingness to redistribute resources to minority or poorer ethnic groups, especially in ethnically diverse societies. This can result in lower support for policies that would tax themselves more to benefit others outside their group.

Question 18

Tax effort for public schools is about the same regardless of state or economic condition.

Accepted Answer

The tax effort for public schools varies widely depending on the state and its economic condition. Some states have higher taxes or allocate more funding towards education than others, and states with stronger economies may have more resources available for education than those with weaker economies.

Question 19

Taxpayers in wealthy school districts typically provide greater tax effort than taxpayers in poor school districts.

Accepted Answer

Wealthy school districts often have a larger tax base, allowing them to raise more revenue at lower tax rates compared to poorer districts, which may have to exert higher tax effort to meet their funding needs.

Question 20

Two school districts with the same tax capacity will usually put forth the same level of tax effort.

Accepted Answer

Two school districts with the same tax capacity may have different levels of tax effort due to differences in their financial needs, local economic factors, and political priorities.

Quiz 7: Fiscal Capacity and Tax Effort in the Funding of Public Schools