Texas POL1133 Final Exam UPDATED
Questions and CORRECT Answers
When income _____, we purchase more goods and pay ____ taxes - CORRECT
ANSWER - rises, more
What is the sales tax in Texas? - CORRECT ANSWER - 6.25%
Severance Tax - CORRECT ANSWER - Taxes on the extracation of natural resources
(Oil, Natural gas, coal)
"Sin" Tax - CORRECT ANSWER - A tax on gambling, cigarettes/tobacco, alcohol
General Sales Tax - CORRECT ANSWER - Largest source of tax revenue; appleid to sale
price of tangible personal property purchased, leased, or rented
Progressive Tax System - CORRECT ANSWER - a system of taxation in which the rate
paid reflects ability to pay
Proportional Tax System - CORRECT ANSWER - a tax whose average tax rate remains
constant as the taxpayer's income increases or decreases
Regressive Tax System - CORRECT ANSWER - a tax whose average tax rate decreases
as the taxpayer's income increases and increases as the taxpayer's income decreases
What office or state official is required by the State Constitution to give the legislature an
estimate on revenues and expenditures for the upcoming two-year-cycle? - CORRECT
ANSWER - The Comptroller
, Performance Based Budget System - CORRECT ANSWER - The allocation of funds
based on performance by a specific orginization
Interest Group - CORRECT ANSWER - An organization of people sharing a common
interest or goal that seeks to influence the making of public policy
Political Action Committee (PAC) - CORRECT ANSWER - A committee set up by a
corporation, labor union, or interest group that raises and spends campaign money from
voluntary donations
Free Rider Dilemma - CORRECT ANSWER - a situation in which individuals who stand
to benefit from a collective good have no incentive to contribute, thus threatening the provision
of the good
Lobbyists - CORRECT ANSWER - people who represent interest groups
Collective Good - CORRECT ANSWER - something of value that cannot be withheld
from a potential group member
Reasons for joining an Interest Group - CORRECT ANSWER - 1. Solidary incentives
2. Purposive incentives
3. Economic incentive
Direct (Inside) Lobbying - CORRECT ANSWER - direct interaction with public officials
for the purpose of influencing policy decisions
Indirect (Outside) Lobbying - CORRECT ANSWER - attempts to influence government
policymakers by encouraging the general public to put pressure on them
James Madison in Federalist 10 - CORRECT ANSWER - Held people in a free society
will always pursue their interests
Questions and CORRECT Answers
When income _____, we purchase more goods and pay ____ taxes - CORRECT
ANSWER - rises, more
What is the sales tax in Texas? - CORRECT ANSWER - 6.25%
Severance Tax - CORRECT ANSWER - Taxes on the extracation of natural resources
(Oil, Natural gas, coal)
"Sin" Tax - CORRECT ANSWER - A tax on gambling, cigarettes/tobacco, alcohol
General Sales Tax - CORRECT ANSWER - Largest source of tax revenue; appleid to sale
price of tangible personal property purchased, leased, or rented
Progressive Tax System - CORRECT ANSWER - a system of taxation in which the rate
paid reflects ability to pay
Proportional Tax System - CORRECT ANSWER - a tax whose average tax rate remains
constant as the taxpayer's income increases or decreases
Regressive Tax System - CORRECT ANSWER - a tax whose average tax rate decreases
as the taxpayer's income increases and increases as the taxpayer's income decreases
What office or state official is required by the State Constitution to give the legislature an
estimate on revenues and expenditures for the upcoming two-year-cycle? - CORRECT
ANSWER - The Comptroller
, Performance Based Budget System - CORRECT ANSWER - The allocation of funds
based on performance by a specific orginization
Interest Group - CORRECT ANSWER - An organization of people sharing a common
interest or goal that seeks to influence the making of public policy
Political Action Committee (PAC) - CORRECT ANSWER - A committee set up by a
corporation, labor union, or interest group that raises and spends campaign money from
voluntary donations
Free Rider Dilemma - CORRECT ANSWER - a situation in which individuals who stand
to benefit from a collective good have no incentive to contribute, thus threatening the provision
of the good
Lobbyists - CORRECT ANSWER - people who represent interest groups
Collective Good - CORRECT ANSWER - something of value that cannot be withheld
from a potential group member
Reasons for joining an Interest Group - CORRECT ANSWER - 1. Solidary incentives
2. Purposive incentives
3. Economic incentive
Direct (Inside) Lobbying - CORRECT ANSWER - direct interaction with public officials
for the purpose of influencing policy decisions
Indirect (Outside) Lobbying - CORRECT ANSWER - attempts to influence government
policymakers by encouraging the general public to put pressure on them
James Madison in Federalist 10 - CORRECT ANSWER - Held people in a free society
will always pursue their interests
