Texas Government Questions with CORRECT Answers (Verified Update)
Q1: The Available School Fund, the State Instructional Materials Fund, and the Foundation School
Fund are parts of which category of the Texas budget?
A. General Revenue Funds
B. General Revenue-Dedicated Fund
C. Federal Funds
D. Other Funds - a. General Revenue Funds
Answer: D. Other Funds - a. General Revenue Funds
Q2: parts of which category of the Texas budget?
A. General Revenue Funds
B. General Revenue-Dedicated Fund
C. Federal Funds
D. Other Funds
Answer: A. General Revenue Funds
Q3: Most federal expenditures in Texas go to education and health and human services.
However, in order to receive these funds, Texas must
A. allow the federal government to manage these programs.
B. coordinate efforts with neighboring states to achieve economies of scale.
C. implement progressive taxes in order to generate more revenue.
D. spend state money in these areas first. - d. spend state money in these areas first.
Answer: D. spend state money in these areas first. - d. spend state money in these areas first.
Q4: Why must the Texas legislature maintain a balanced budget?
A. It is required by the U.S. Constitution.
B. It is required by the Texas Constitution.
C. Each legislative session decides to balance or not balance the state budget.
D. The Texas Office of the Comptroller writes the state budget. - b. It is required by the
Texas Constitution.
Answer: D. The Texas Office of the Comptroller writes the state budget. - b. It is required by the
Texas Constitution.
,Q5: Which statement about the Texas budget is true?
A. It covers a two-year period.
B. It can include deficit financing from some government operations.
C. It is impossible to run a budget surplus.
D. It allows the Highway Trust Fund to be used for education during economic recessions. -
a. It covers a two-year period.
Answer: D. It allows the Highway Trust Fund to be used for education during economic recessions. -
a. It covers a two-year period.
Q6: ________ budget is comprised of funds for dedicated revenues that target money for specific
purposes.
A. General Revenues Fund
B. General Revenue-Dedicated Funds
C. Federal Funds
D. Rainy Day Funds - b. General Revenue-Dedicated Funds
Answer: D. Rainy Day Funds - b. General Revenue-Dedicated Funds
Q7: Due to the structure of the budget and the constitutional requirement to balance the budget,
A. legislators are given a great amount of flexibility in terms of the budgeting process.
B. legislators have only a few choices in terms of the budgeting process.
C. the budget is easy to forecast each session.
D. legislators generally raise taxes frequently to be able to increase the services offered by
the state.
Answer: B. legislators have only a few choices in terms of the budgeting process.
Q8: ________ is a non-dedicated revenue account and is the state's primary operating fund.
A. The General Revenues Funds budget
B. The General Revenue-Dedicated Funds budget
C. The Federal Funds budget
D. The Other Funds budget - a. The General Revenues Funds budget
Answer: D. The Other Funds budget - a. The General Revenues Funds budget
Q9: Federal money is an important part of the Texas budget, but monies that Texas receives from
the federal government
A. often come with strings attached.
B. are usually categorical grants with no federal guidelines or mandates whatsoever.
C. are too insignificant to be included in the state budgetary process.
D. are usually not received in time to affect the budget process.
Answer: A. often come with strings attached.
,Q10: Federal funds appropriated in Texas generally are
A. widely disbursed across numerous state agencies.
B. concentrated in one agency.
C. concentrated in a few state agencies.
D. determined at each annual legislative session. - c. concentrated in a few state agencies.
Answer: D. determined at each annual legislative session. - c. concentrated in a few state
agencies.
Q11: When thinking about the system of public financing through these various budgets and
funds, it is important to remember that
A. personal income taxes are the largest source of funding for the state.
B. the legislature does not have direct control of most of the money in the state budget.
C. the legislature has a good amount of flexibility in terms of how money in the different
funds can be spent.
D. federal expenditures are determined by the state legislature. - b. the legislature does
not have direct control of most of the money in the state budget.
Answer: D. federal expenditures are determined by the state legislature. - b. the legislature does
not have direct control of most of the money in the state budget.
Q12: Texas has a reputation of being a ________ state.
A. "low service, high tax"
B. "low service, low tax"
C. "no services, low tax"
D. "high service, high tax" - b. "low service, low tax"
Answer: D. "high service, high tax" - b. "low service, low tax"
Q13: Texas spending on a per capita basis is
A. about even with the national average.
B. much higher than the national average.
C. much lower than the national average.
D. among the highest, particularly in education.
Answer: C. much lower than the national average.
Q14: Texas ranks _________ in terms of state spending per capita, and it ranks _________ in
terms of how much money it gets from the federal government per capita.
A. low; high
B. in the middle; in the middle
C. high; low
D. low; in the middle - A
Answer: D. low; in the middle - A
, Q15: In Texas, the state and local governments can both levy sales taxes. These general state and
local sales taxes can combine to reach a rate of _________ percent.
A. 25
B. 15
C. 50
D. 25 - A
Answer: D. 25 - A
Q16: What is the most important single tax financing Texas government?
A. income
B. sales
C. property
D. Gasoline - B
Answer: D. Gasoline - B
Q17: What determines the amount of tax revenue generated from oil and natural gas produced in
Texas?
A. the minimum wage and unemployment rate
B. market price and the amount produced
C. federal regulations and excise taxes imposed by the federal government
D. pipeline construction and environmental issues - B
Answer: D. pipeline construction and environmental issues - B
Q18: A ________ is a tax on the market value of oil produced in the state.
A. general sales tax
B. selective sales tax
C. severance tax
D. hidden tax
Answer: C. severance tax
Q19: Overall, the tax system in Texas is generally considered to be regressive, which means that
A. the tax burden consumes a greater percentage of income received by lower-income
individuals.
B. the tax burden consumes a greater percentage of the income earned by higher-income
individuals.
C. everybody pays the same percent of his or her income in taxes.
D. the more income one has, the larger the percentage of it that goes to pay taxes. - A
Answer: D. the more income one has, the larger the percentage of it that goes to pay taxes. - A
Q1: The Available School Fund, the State Instructional Materials Fund, and the Foundation School
Fund are parts of which category of the Texas budget?
A. General Revenue Funds
B. General Revenue-Dedicated Fund
C. Federal Funds
D. Other Funds - a. General Revenue Funds
Answer: D. Other Funds - a. General Revenue Funds
Q2: parts of which category of the Texas budget?
A. General Revenue Funds
B. General Revenue-Dedicated Fund
C. Federal Funds
D. Other Funds
Answer: A. General Revenue Funds
Q3: Most federal expenditures in Texas go to education and health and human services.
However, in order to receive these funds, Texas must
A. allow the federal government to manage these programs.
B. coordinate efforts with neighboring states to achieve economies of scale.
C. implement progressive taxes in order to generate more revenue.
D. spend state money in these areas first. - d. spend state money in these areas first.
Answer: D. spend state money in these areas first. - d. spend state money in these areas first.
Q4: Why must the Texas legislature maintain a balanced budget?
A. It is required by the U.S. Constitution.
B. It is required by the Texas Constitution.
C. Each legislative session decides to balance or not balance the state budget.
D. The Texas Office of the Comptroller writes the state budget. - b. It is required by the
Texas Constitution.
Answer: D. The Texas Office of the Comptroller writes the state budget. - b. It is required by the
Texas Constitution.
,Q5: Which statement about the Texas budget is true?
A. It covers a two-year period.
B. It can include deficit financing from some government operations.
C. It is impossible to run a budget surplus.
D. It allows the Highway Trust Fund to be used for education during economic recessions. -
a. It covers a two-year period.
Answer: D. It allows the Highway Trust Fund to be used for education during economic recessions. -
a. It covers a two-year period.
Q6: ________ budget is comprised of funds for dedicated revenues that target money for specific
purposes.
A. General Revenues Fund
B. General Revenue-Dedicated Funds
C. Federal Funds
D. Rainy Day Funds - b. General Revenue-Dedicated Funds
Answer: D. Rainy Day Funds - b. General Revenue-Dedicated Funds
Q7: Due to the structure of the budget and the constitutional requirement to balance the budget,
A. legislators are given a great amount of flexibility in terms of the budgeting process.
B. legislators have only a few choices in terms of the budgeting process.
C. the budget is easy to forecast each session.
D. legislators generally raise taxes frequently to be able to increase the services offered by
the state.
Answer: B. legislators have only a few choices in terms of the budgeting process.
Q8: ________ is a non-dedicated revenue account and is the state's primary operating fund.
A. The General Revenues Funds budget
B. The General Revenue-Dedicated Funds budget
C. The Federal Funds budget
D. The Other Funds budget - a. The General Revenues Funds budget
Answer: D. The Other Funds budget - a. The General Revenues Funds budget
Q9: Federal money is an important part of the Texas budget, but monies that Texas receives from
the federal government
A. often come with strings attached.
B. are usually categorical grants with no federal guidelines or mandates whatsoever.
C. are too insignificant to be included in the state budgetary process.
D. are usually not received in time to affect the budget process.
Answer: A. often come with strings attached.
,Q10: Federal funds appropriated in Texas generally are
A. widely disbursed across numerous state agencies.
B. concentrated in one agency.
C. concentrated in a few state agencies.
D. determined at each annual legislative session. - c. concentrated in a few state agencies.
Answer: D. determined at each annual legislative session. - c. concentrated in a few state
agencies.
Q11: When thinking about the system of public financing through these various budgets and
funds, it is important to remember that
A. personal income taxes are the largest source of funding for the state.
B. the legislature does not have direct control of most of the money in the state budget.
C. the legislature has a good amount of flexibility in terms of how money in the different
funds can be spent.
D. federal expenditures are determined by the state legislature. - b. the legislature does
not have direct control of most of the money in the state budget.
Answer: D. federal expenditures are determined by the state legislature. - b. the legislature does
not have direct control of most of the money in the state budget.
Q12: Texas has a reputation of being a ________ state.
A. "low service, high tax"
B. "low service, low tax"
C. "no services, low tax"
D. "high service, high tax" - b. "low service, low tax"
Answer: D. "high service, high tax" - b. "low service, low tax"
Q13: Texas spending on a per capita basis is
A. about even with the national average.
B. much higher than the national average.
C. much lower than the national average.
D. among the highest, particularly in education.
Answer: C. much lower than the national average.
Q14: Texas ranks _________ in terms of state spending per capita, and it ranks _________ in
terms of how much money it gets from the federal government per capita.
A. low; high
B. in the middle; in the middle
C. high; low
D. low; in the middle - A
Answer: D. low; in the middle - A
, Q15: In Texas, the state and local governments can both levy sales taxes. These general state and
local sales taxes can combine to reach a rate of _________ percent.
A. 25
B. 15
C. 50
D. 25 - A
Answer: D. 25 - A
Q16: What is the most important single tax financing Texas government?
A. income
B. sales
C. property
D. Gasoline - B
Answer: D. Gasoline - B
Q17: What determines the amount of tax revenue generated from oil and natural gas produced in
Texas?
A. the minimum wage and unemployment rate
B. market price and the amount produced
C. federal regulations and excise taxes imposed by the federal government
D. pipeline construction and environmental issues - B
Answer: D. pipeline construction and environmental issues - B
Q18: A ________ is a tax on the market value of oil produced in the state.
A. general sales tax
B. selective sales tax
C. severance tax
D. hidden tax
Answer: C. severance tax
Q19: Overall, the tax system in Texas is generally considered to be regressive, which means that
A. the tax burden consumes a greater percentage of income received by lower-income
individuals.
B. the tax burden consumes a greater percentage of the income earned by higher-income
individuals.
C. everybody pays the same percent of his or her income in taxes.
D. the more income one has, the larger the percentage of it that goes to pay taxes. - A
Answer: D. the more income one has, the larger the percentage of it that goes to pay taxes. - A
