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22 Cards in this Set

  • Front
  • Back
Which is a progressive tax?
a. State use tax
b. U.S. income tax
c. Federal excise tax
d. Personal property tax
b. U.S. income tax
Why is federal property not taxed?
It would violate the efficiency principle. There would be an administrative cost of assessing and collecting the tax, simply to pass money from one government account to another.
Which is NOT a tax expenditure?
a. Inflation adjustment to real property tax rates.
b. Deduction for interest on home mortgage loans.
c. Credit for costs associated with adoption costs
d. Deduction for installation of energy-efficient windows
a. Inflation adjustment to real property tax rates.
Which is a significant source of revenue for local governments?
a. Excise taxes
b. Estate taxes
c. Use taxes
d. Property taxes
d. Property taxes
Which is NOT a relative advantage of income taxes?
a. They respond to changing economic conditions
b. They are based on expert assessments.
c. They are administered at relatively low cost
d. Compliance rates tend to be high.
b. They are based on expert assessments.
What poses the greatest challenge in a real property tax system?
a. Assessment and reporting
b. Appraisal and assessment
c. Accounting and assessment
d. Reporting and appraisal
b. Appraisal and assessment
What type of tax is least likely to be applied to office furniture owned by a business?
a. Personal property
b. Real property
c. Use
b. Real property
Steve just bought a home and is calculating his future property tax bill. The town leviews a tax rate of 18 mills and his home is valued at $160,000. What will be his annual tax bill?
$2,880. Formula is $160,000/1000 X 18
What of the following is NOT a consumption tax?
a. Estate
b. Sales
c. Excise
d. VAT
a. Estate
Which two statements are least true of shared revenue? Select two correct answers.
a. They resemble block grants that are given b y the federal government to states.
b. They are based on formulae established in local ordinances.
c. They are discretionary and based on competition and peer review.
d. They are usually provided with few requirements attached.
b. They are based on formulae established in local ordinances.
c. They are discretionary and based on competition and peer review.
In recent years there has been a trend toward "devolution" of government. How is this particular trend reflected in government grant activity?
a. Increase in categorical grants
b. Increase in block grants
c. Increase in competitive grants.
d. Increase in dicretionary grants.
b. Increase in block grants
What is most true about formulae grants?
a. Awards are typically based on evaluation by a board comprised of program officials and informed citizens.
b. Lower-level entities are required to provide matching funds to receive maximum awards.
c. Program guidelines determine the amount to be transferred from grantor to grantee if basic eligibility requirements are satisfied.
d. Level of awards tends to fluctuate within funding periods based on funds available.
c. Program guidelines determine the amount to be transferred from grantor to grantee if basic eligibility requirements are satisfied.
Which of the following is typically considered a cross-cutting requirement?
a. Recipients must comply with environmental impact standards.
b. Recipients must hire a female-owned small companty to conduct audits of financial statements.
c. Recipients must inhibit civil rights procedures.
d. Recipients must sell program-related equipment and remit the proceeds to the funding activity.
a. Recipients must comply with environmental impact standards.
Which is a true statement regarding license fees?
a. They are excluded from use by the licensing program
b. They are used to regulate nonbusiness activities
c. Professional business activities are exempt
d. They are imposed most often by federal entities
b. They are used to regulate nonbusiness activities
How could an executive branch agency encourage use of a service?
a. Implement pre-registration
b. Raise excise taxes
c. Suspend environmental laws
d. Lower user fees
d. Lower user fees
One way governments receive resources ijs through donations. How are donations different from user fees and taxes?
Unlike taxes, they are voluntary. Unlike user fees, they do not convey any privileges to the donor.
How is the debt limit for a state established?
a. In bond covenants, ordinances and the constitution.
b. In charters, ordinances and bond covenants.
c. In statutes, the constitution and bond covenants
d. In the constitution, statutes and charters
c. In statutes, the constitution and bond covenants
What is meant by "restructuring debt" and why is it done?
Entities restructure debt when they issue new debt at lower interest rates to pay off older debts at higher interest rates. They do it for the same reason homeowners refinance their mortgages-to save moeny.
What must a debt program provide in order to be effective?
a. Enough funds to complete the project.
b. A clause that guarentees restructuring of the debt.
c. An alternative debt accounting structure.
d. Lower interest rates for revenue bond issues.
a. Enough funds to complete the project.
Which of the following is of least interest to a credit-rating agency?
a. Details of the bond covenant
b. Qualifications and authority of officials who will manage the debt.
c. Economic conditions in neighboring states.
d. Current debt issues outstanding.
c. Economic conditions in neighboring states.
How are self-financing, special-purpose governments funded?
Through user fees. They provide a service and charge for the service; the service fees support the activity. One example is a utility.
What debt instrument would be used when several government entities participate in a lease-purchase agreementd?
Certificate of Participation, as discussed in the study guide.