POLS 207 Exam 2 Roblyer
Most Common Sources of State Government Revenue: (7) - CORRECT ANSWER-Taxes
Federal Grants
Fees and licenses
Interest on investments
Direct sales
Borrowing
Gambling
How are State and Local Government Revenue trends similar? - CORRECT ANSWER-Both
have 75% revenue from own revenue
How are State and Local Government Revenue trends different? - CORRECT ANSWER-State
receives 1/4 revenue from Federal Government and Local receives less
Local receive 1/4 from state governments and States receive 1% from local governments
Why are taxes required? - CORRECT ANSWER-Because the market is unable or unwilling
to provide public goods
Why do markets fail? - CORRECT ANSWER-Because voluntary exchange of items of equal
value do not occur with acceptable certainty
Revenue formula: - CORRECT ANSWER-Base X Rate
(income) X (tax)
Tax burden formula: - CORRECT ANSWER-Total Tax Bill / Total income
What is a tax bill? - CORRECT ANSWER-sum of all the taxes paid in a year by a person or
business
First data point of choice in discussion or ads about taxes: - CORRECT ANSWER-Tax Rate
Second data point of choice when discussing or debating about taxation amounts: - CORRECT
ANSWER-Tax Bill
What's the most accurate data point to compare taxation effects although rarely used? -
CORRECT ANSWER-Tax Burden
If discussing tax rates is it progressive or regressive? - CORRECT ANSWER-Progressive
If discussing tax bills is it progressive or regressive? - CORRECT ANSWER-Progressive
, IF discussing tax incidence is it regressive or progressive? - CORRECT ANSWER-Regressive
What are merit goods? - CORRECT ANSWER-goods which should not be denied to people
who cannot pay for them
Gross Domestic Product definition - CORRECT ANSWER-measure of the size, health, and
power of the economy as a nation
What is a stabilization fund? - CORRECT ANSWER-mechanism set up by a government to
insulate the domestic economy from large influxes of revenue, as from commodities such as
oil
What is a tax base? - CORRECT ANSWER-the item/amount subject to taxation
What is a tax rate? - CORRECT ANSWER-the percentage set by legislature
What is a tax burden? - CORRECT ANSWER-A measure that takes the tax bill of a person
or corporation and folds in consideration of their ability to pay
What is a tax incidence? - CORRECT ANSWER-analysis of the effect of a particular tax on
the distribution of economic welfare. Falls on the group who bears the burden of the tax
How is most polling done for initiative and referendum? - CORRECT ANSWER-Over the
telephone; which is cheaper but has a lower response rate
What is happening to polling as Americans switch from landlines to cell phones? - CORRECT
ANSWER-The cost of polling is increasing because it is illegal to use autodial technology to
call cell phones
What does every amendment to the Texas Constitution require? - CORRECT ANSWER-A
referendum
Do states require popular vote to place a measure on the ballot? - CORRECT ANSWER-Every
state except Delaware
What do political scientists focus on? - CORRECT ANSWER-Voting
Is turnout greater in presidential than in gubernational elections? - CORRECT ANSWER-Yes
Which type of voting turnout do media use to inflate voter turnout? - CORRECT ANSWER-
Registered voters
How does socioeconomic status affect voter turnout? - CORRECT ANSWER-Lower income
citizens vote less; major parties focus appeals to higher-income voters
Most Common Sources of State Government Revenue: (7) - CORRECT ANSWER-Taxes
Federal Grants
Fees and licenses
Interest on investments
Direct sales
Borrowing
Gambling
How are State and Local Government Revenue trends similar? - CORRECT ANSWER-Both
have 75% revenue from own revenue
How are State and Local Government Revenue trends different? - CORRECT ANSWER-State
receives 1/4 revenue from Federal Government and Local receives less
Local receive 1/4 from state governments and States receive 1% from local governments
Why are taxes required? - CORRECT ANSWER-Because the market is unable or unwilling
to provide public goods
Why do markets fail? - CORRECT ANSWER-Because voluntary exchange of items of equal
value do not occur with acceptable certainty
Revenue formula: - CORRECT ANSWER-Base X Rate
(income) X (tax)
Tax burden formula: - CORRECT ANSWER-Total Tax Bill / Total income
What is a tax bill? - CORRECT ANSWER-sum of all the taxes paid in a year by a person or
business
First data point of choice in discussion or ads about taxes: - CORRECT ANSWER-Tax Rate
Second data point of choice when discussing or debating about taxation amounts: - CORRECT
ANSWER-Tax Bill
What's the most accurate data point to compare taxation effects although rarely used? -
CORRECT ANSWER-Tax Burden
If discussing tax rates is it progressive or regressive? - CORRECT ANSWER-Progressive
If discussing tax bills is it progressive or regressive? - CORRECT ANSWER-Progressive
, IF discussing tax incidence is it regressive or progressive? - CORRECT ANSWER-Regressive
What are merit goods? - CORRECT ANSWER-goods which should not be denied to people
who cannot pay for them
Gross Domestic Product definition - CORRECT ANSWER-measure of the size, health, and
power of the economy as a nation
What is a stabilization fund? - CORRECT ANSWER-mechanism set up by a government to
insulate the domestic economy from large influxes of revenue, as from commodities such as
oil
What is a tax base? - CORRECT ANSWER-the item/amount subject to taxation
What is a tax rate? - CORRECT ANSWER-the percentage set by legislature
What is a tax burden? - CORRECT ANSWER-A measure that takes the tax bill of a person
or corporation and folds in consideration of their ability to pay
What is a tax incidence? - CORRECT ANSWER-analysis of the effect of a particular tax on
the distribution of economic welfare. Falls on the group who bears the burden of the tax
How is most polling done for initiative and referendum? - CORRECT ANSWER-Over the
telephone; which is cheaper but has a lower response rate
What is happening to polling as Americans switch from landlines to cell phones? - CORRECT
ANSWER-The cost of polling is increasing because it is illegal to use autodial technology to
call cell phones
What does every amendment to the Texas Constitution require? - CORRECT ANSWER-A
referendum
Do states require popular vote to place a measure on the ballot? - CORRECT ANSWER-Every
state except Delaware
What do political scientists focus on? - CORRECT ANSWER-Voting
Is turnout greater in presidential than in gubernational elections? - CORRECT ANSWER-Yes
Which type of voting turnout do media use to inflate voter turnout? - CORRECT ANSWER-
Registered voters
How does socioeconomic status affect voter turnout? - CORRECT ANSWER-Lower income
citizens vote less; major parties focus appeals to higher-income voters
