POLS 207 TAMU Ives Exam With
Complete Solution
Budget deficit - ANSWER Amount of money coming in falls short of the amount
spent (government)
Revenues - Answer The government's revenue from taxes
User fees - ANSWER Government charges for services. Such fees are a sort of
hidden tax.
Excise (sin) taxes: ANSWER Taxes on alcohol, tobacco, and other comparable
products are intended to increase revenue while decreasing use.
Estate taxes - ANSWER Taxes imposed on a person's estate or total holdings after
their death.
Gift taxes - ANSWER Taxes levied on money transfers done during one's lifetime
Sales tax - ANSWER taxes imposed on customer purchases of products and
services.
Regressive taxes - ANSWER A tax that does not differ depending on an
individual's ability to pay.
Tax burden - ANSWER A measure of taxes paid as a percentage of income
Income tax - ANSWER taxes on wages and interest earned
, Progressive tax - ANSWER A taxation system in which the rate paid matches the
ability to pay.
Severance taxes: ANSWER Taxes on natural resources extracted from a state
Insurance trust funds - ANSWER Money collected through donations, levies,
insurance premiums, and payroll taxes.
Intergovernmental transfers are funds granted by the federal government to state
governments, as well as by state governments to municipal governments.
Tax capacity - ANSWER A measurement of the ability to pay taxes.
Tax effort - ANSWER The ratio of taxes paid to the ability to pay taxes.
Dividend: ANSWER A payout made to stockholders from an investment.
Bonds are debt certificates on which the issuer agrees to pay the holders a defined
amount of interest for a set time and return the loans when they mature.
Capital Investment - ANSWER Spending money to construct factories, roadways,
and buildings
General obligation bonds are investments secured by the taxing power of the
jurisdiction that issues them.
Revenue bonds are investments backed by the revenue generated by a state or local
project.
Complete Solution
Budget deficit - ANSWER Amount of money coming in falls short of the amount
spent (government)
Revenues - Answer The government's revenue from taxes
User fees - ANSWER Government charges for services. Such fees are a sort of
hidden tax.
Excise (sin) taxes: ANSWER Taxes on alcohol, tobacco, and other comparable
products are intended to increase revenue while decreasing use.
Estate taxes - ANSWER Taxes imposed on a person's estate or total holdings after
their death.
Gift taxes - ANSWER Taxes levied on money transfers done during one's lifetime
Sales tax - ANSWER taxes imposed on customer purchases of products and
services.
Regressive taxes - ANSWER A tax that does not differ depending on an
individual's ability to pay.
Tax burden - ANSWER A measure of taxes paid as a percentage of income
Income tax - ANSWER taxes on wages and interest earned
, Progressive tax - ANSWER A taxation system in which the rate paid matches the
ability to pay.
Severance taxes: ANSWER Taxes on natural resources extracted from a state
Insurance trust funds - ANSWER Money collected through donations, levies,
insurance premiums, and payroll taxes.
Intergovernmental transfers are funds granted by the federal government to state
governments, as well as by state governments to municipal governments.
Tax capacity - ANSWER A measurement of the ability to pay taxes.
Tax effort - ANSWER The ratio of taxes paid to the ability to pay taxes.
Dividend: ANSWER A payout made to stockholders from an investment.
Bonds are debt certificates on which the issuer agrees to pay the holders a defined
amount of interest for a set time and return the loans when they mature.
Capital Investment - ANSWER Spending money to construct factories, roadways,
and buildings
General obligation bonds are investments secured by the taxing power of the
jurisdiction that issues them.
Revenue bonds are investments backed by the revenue generated by a state or local
project.
