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Which of the Following Is True of State Revenue and Management

Question 55

Multiple Choice

Which of the following is true of state revenue and management systems?


A) Medicaid provides equal financial support to all states, irrespective of their economic status.
B) Although states vary in their natural resources, it does not affect their ability to obtain severance taxes.
C) States do not vary greatly in their fiscal capabilities.
D) State and local governments vary greatly in their administrative capabilities.
E) State revenue systems are better at collecting taxes on services than on goods.

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