Question 1

​The effect of pari-mutuel betting and the lottery has been _____.

Accepted Answer

A

Question 2

Which of these five major revenue funds in Texas supports the majority of state programs?

Accepted Answer

The General Revenue Fund supports the majority of state programs in Texas, including education, healthcare, public safety, and many others. It is the largest and most flexible of the major revenue funds in the state.

Question 3

The Texas economy is shifting from one based on natural resources to one based on _____.

Accepted Answer

Texas has been making strides towards becoming a hub for information and technology. Major tech companies, including Apple, Google, and Facebook, have opened large offices in the state. In addition, Texas has several emerging tech startups and established businesses in the industry. This shift to a tech-based economy has been attributed to a younger workforce, low cost of living, and favorable tax incentives.

Question 4

Which statement regarding the revenue structure of Texas is not true?

Accepted Answer

Texas's reliance on sales taxes, which are considered regressive, makes its revenue structure relatively inelastic rather than elastic. This is because sales tax revenues do not fluctuate significantly with the economy, affecting those with lower incomes more severely.

Question 5

A _____ year is the budget year for a government or corporation.​

Accepted Answer

Fiscal year is the term used for the budget year of a government or corporation. Financial year and economic year are sometimes used interchangeably with fiscal year, but fiscal year is the most commonly used term. Spending and debt refer to aspects of the budget, but are not synonymous with the budget year itself.

Question 6

What term is used to describe increases in what things cost in an economy?

Accepted Answer

Inflation refers to the general increase in prices of goods and services within an economy over a certain period of time.

Question 7

​Which statement about state university tuition in Texas is not true?

Accepted Answer

The answer of ​Which statement about state university tuition in...

Question 8

Tax equity refers to ​_____.

Accepted Answer

Tax equity refers to the concept that taxes should be fair and just, and that everyone should contribute their fair share based on their ability to pay. It also means that tax laws and policies should not discriminate against any particular group or individual.

Question 9

Because the tax system in Texas is not easily adjusted to ups and downs in the economy,it is said to _____.

Accepted Answer

The statement suggests that the tax system in Texas is not easily adjusted to ups and downs in the economy, which implies that it lacks elasticity. Elasticity refers to the degree to which tax revenues change in response to changes in economic activity. A tax system that is elastic can generate more revenue in good economic times and less revenue in bad economic times. Therefore, the lack of elasticity in the Texas tax system makes it difficult to adapt to changing economic conditions.

Question 10

Because the framers of the state constitution believed in "pay-as-you-go" government,_____.

Accepted Answer

The question states that the framers of the state constitution believed in "pay-as-you-go" government. Therefore, they highly restricted state government borrowing. Additionally, in cases of emergency borrowing, a four-fifths majority vote of the legislature is required for approval. The options C and E are incorrect because they state that the governor, the lieutenant governor, and the speaker of the House can authorize limited borrowing, which contradicts the restrictions set by the framers of the state constitution.

Question 11

Which statement about the state of Texas's relationship with federal funding is true?​

Accepted Answer

All of the statements are true. Federal grants are indeed the largest nontax source of money for the state government of Texas. Almost 40% of the state's total revenue comes from the federal government. At times, the state government of Texas has failed to take advantage of federal money because it would require the state to also spend money. And the state government is concerned that the costs of meeting federal requirements might exceed the amount of money provided by the federal government.

Question 12

Which statement about block grants is true?

Accepted Answer

Block grants are designed to provide funds to states for broad programs or policy areas, allowing them the flexibility to determine how best to allocate resources to reach their goals.

Question 13

​The two most significant problems with the tax system in Texasare _____.

Accepted Answer

Texas's tax system is often criticized for its lack of fairness and elasticity, meaning it does not adjust well to economic changes and may disproportionately affect lower-income individuals.

Question 14

Why are revenue shortfallssuch a problem for the Texas tax system?

Accepted Answer

The Texas tax system is heavily reliant on sales taxes, which means that when the economy is weak and people reduce their spending, revenue from sales taxes decreases. This system disproportionately affects low- and middle-class individuals who spend a larger portion of their income, making revenue shortfalls a significant problem.

Question 15

Which type of federal grant could be used only for programs specified in the grant?

Accepted Answer

Categorical grant-in-aid is a type of federal grant that can only be used for specific programs or purposes as specified in the grant. It is often used to fund programs in areas such as education, public health, transportation, and housing.

Question 16

​Revenue taxes are designed to _____,while regulatory taxes are designed to _____.

Accepted Answer

Revenue taxes, as the name suggests, are designed to raise government income, while regulatory taxes are used to either discourage undesirable behavior (like "sin taxes" on tobacco and alcohol) or encourage desirable behavior (like tax credits for energy-efficient upgrades to homes). Thus, the correct option is D: raise government income and punish undesired behavior or reward desired behavior.

Question 17

​Which statementabout the Texas economy is not true?

Accepted Answer

The statement that state policymakers expanded the Texas economy by creating a strong educational system is not true. While Texas has some highly regarded institutions of higher education, the state's overall educational system has been criticized for underfunding and inadequate resources. Other statements about the economic distance between highly skilled and unskilled workers growing, the "boom and bust" nature of the Texas economy, many of the jobs being minimum-wage, and Texas's tax structure being favorable for the business community are generally true.

Question 18

Which official serves as the state's tax collector?

Accepted Answer

The comptroller serves as the state's chief financial officer and tax collector, overseeing the administration of the state's tax system.

Question 19

​A fee for a specific government service charged to the person who benefits from the service is _____.

Accepted Answer

A user fee is a specific government service charged only to the individual or entity that directly benefits from the service. This is different from a sales tax, which is a general tax on goods and services regardless of who benefits, and federal funding, which refers to money the federal government provides for various programs and purposes. Pari-mutuel betting is a type of gambling, and although it may involve fees, it is not a type of government fee or service.

Question 20

In 1991,in order to increase state revenue,voters in Texas approved _____.

Accepted Answer

Texas voters approved the creation of the Texas Lottery in 1991 as a means of increasing state revenue. The lottery began selling tickets in May 1992.

Quiz 12: The State Economy and the Financing of State Government

The effect of pari-mutuel betting and the lottery has been _____.

Which of these five major revenue funds in Texas supports the majority of state programs?

The Texas economy is shifting from one based on natural resources to one based on _____.

Which statement regarding the revenue structure of Texas is not true?

A _____ year is the budget year for a government or corporation.

What term is used to describe increases in what things cost in an economy?

Which statement about state university tuition in Texas is not true?

Tax equity refers to _____.

Because the tax system in Texas is not easily adjusted to ups and downs in the economy,it is said to _____.

Because the framers of the state constitution believed in "pay-as-you-go" government,_____.

Which statement about the state of Texas's relationship with federal funding is true?

Which statement about block grants is true?

The two most significant problems with the tax system in Texasare _____.

Why are revenue shortfallssuch a problem for the Texas tax system?

Which type of federal grant could be used only for programs specified in the grant?

Revenue taxes are designed to _,while regulatory taxes are designed to _.

Which statementabout the Texas economy is not true?

Which official serves as the state's tax collector?

A fee for a specific government service charged to the person who benefits from the service is _____.

In 1991,in order to increase state revenue,voters in Texas approved _____.

Quiz 12: The State Economy and the Financing of State Government

​The effect of pari-mutuel betting and the lottery has been _____.

Which of these five major revenue funds in Texas supports the majority of state programs?

The Texas economy is shifting from one based on natural resources to one based on _____.

Which statement regarding the revenue structure of Texas is not true?

A _____ year is the budget year for a government or corporation.​

What term is used to describe increases in what things cost in an economy?

​Which statement about state university tuition in Texas is not true?

Tax equity refers to ​_____.

Because the tax system in Texas is not easily adjusted to ups and downs in the economy,it is said to _____.

Because the framers of the state constitution believed in "pay-as-you-go" government,_____.

Which statement about the state of Texas's relationship with federal funding is true?​

Which statement about block grants is true?

​The two most significant problems with the tax system in Texasare _____.

Why are revenue shortfallssuch a problem for the Texas tax system?

Which type of federal grant could be used only for programs specified in the grant?

​Revenue taxes are designed to _____,while regulatory taxes are designed to _____.

​Which statementabout the Texas economy is not true?

Which official serves as the state's tax collector?

​A fee for a specific government service charged to the person who benefits from the service is _____.

In 1991,in order to increase state revenue,voters in Texas approved _____.

The effect of pari-mutuel betting and the lottery has been _____.

A _____ year is the budget year for a government or corporation.

Which statement about state university tuition in Texas is not true?

Tax equity refers to _____.

Which statement about the state of Texas's relationship with federal funding is true?

The two most significant problems with the tax system in Texasare _____.

Revenue taxes are designed to _,while regulatory taxes are designed to _.

Which statementabout the Texas economy is not true?

A fee for a specific government service charged to the person who benefits from the service is _____.