Question 1

The Correspondence Principle says:

Accepted Answer

A)  Every tax that is collected should have a corresponding fund in the government budget. 
B)  Governments who provide the public good or service should be funded by those who consume the good 
C)  Governmental responsibility for a function should be provided at the highest level of government that can deliver the function effectively. 
D)  When one city creates a good public service, other cities will follow. 
A)  Every tax that is collected should have a corresponding fund in the government budget. 
B)  Governments who provide the public good or service should be funded by those who consume the good 
C)  Governmental responsibility for a function should be provided at the highest level of government that can deliver the function effectively. 
D)  When one city creates a good public service, other cities will follow. B

Question 2

The Omnibus Reconciliation Acts of 1981 changed the intergovernmental assistance system by:

Accepted Answer

A)  repealing federal revenue sharing. 
B)  consolidating several categorical programs into block grants. 
C)  expanding the scope of categorical grant systems. 
D)  instituting the first federal block grants. 
A)  repealing federal revenue sharing. 
B)  consolidating several categorical programs into block grants. 
C)  expanding the scope of categorical grant systems. 
D)  instituting the first federal block grants. B

Question 3

An example of HORIZONTAL IMBALANCE in terms of own source funding at lower levels of government is:

Accepted Answer

A)  when the federal government has more money at its disposal than state governments 
B)  when the state governments have more money than local governments 
C)  when the federal government takes away funds but requires that service continue to be provided 
D)  when various schools across the same state have unequal funding 
A)  when the federal government has more money at its disposal than state governments 
B)  when the state governments have more money than local governments 
C)  when the federal government takes away funds but requires that service continue to be provided 
D)  when various schools across the same state have unequal funding D

Question 4

The Principle of Subsidiarity says:

Accepted Answer

A)  Government should only collect enough revenues for basic subsistence. 
B)  Governmental responsibility for a function should be provided at the lowest level of government that can deliver the function effectively. 
C)  Governmental responsibility for a function should be provided at the highest level of government that can deliver the function effectively. 
D)  Agricultural goods should be taxed at a different rate than industrial goods. 
A)  Government should only collect enough revenues for basic subsistence. 
B)  Governmental responsibility for a function should be provided at the lowest level of government that can deliver the function effectively. 
C)  Governmental responsibility for a function should be provided at the highest level of government that can deliver the function effectively. 
D)  Agricultural goods should be taxed at a different rate than industrial goods.

Question 5

A federal categorical grant program to state governments is intended primarily:

Accepted Answer

A)  to take advantage of the low collection costs of federal taxes in comparison with the collection cost of state taxes. 
B)  to redistribute fiscal affluence from high capacity states to low capacity states. 
C)  to provide additional support to well-established state programs. 
D)  to induce state governments to behave in a fashion other than the way they would have behaved without the aid 
A)  to take advantage of the low collection costs of federal taxes in comparison with the collection cost of state taxes. 
B)  to redistribute fiscal affluence from high capacity states to low capacity states. 
C)  to provide additional support to well-established state programs. 
D)  to induce state governments to behave in a fashion other than the way they would have behaved without the aid

Question 6

The principles of subsidiarity and correspondence are used to:

Accepted Answer

A)  Determine the most appropriate level of government for a particular service responsibility. 
B)  Refer to measure of income tax equity. 
C)  Support the concept of government centralization 
D)  Illustrate government's ability to achieve economies of scale. 
A)  Determine the most appropriate level of government for a particular service responsibility. 
B)  Refer to measure of income tax equity. 
C)  Support the concept of government centralization 
D)  Illustrate government's ability to achieve economies of scale.

Question 7

Which of the following is NOT an argument for centralization of sovereign powers?

Accepted Answer

A)  uniformity of governmental services 
B)  equality of access to governmental services and fiscal resources 
C)  greater responsiveness to local needs and interests 
D)  prevents the competitive "race to the bottom" phenomenon 
A)  uniformity of governmental services 
B)  equality of access to governmental services and fiscal resources 
C)  greater responsiveness to local needs and interests 
D)  prevents the competitive "race to the bottom" phenomenon

The Correspondence Principle says:

The Omnibus Reconciliation Acts of 1981 changed the intergovernmental assistance system by:

An example of HORIZONTAL IMBALANCE in terms of own source funding at lower levels of government is:

The Principle of Subsidiarity says:

A federal categorical grant program to state governments is intended primarily:

The principles of subsidiarity and correspondence are used to:

Which of the following is NOT an argument for centralization of sovereign powers?

Fundamental Principles of Public Finance

The Logic of the Budget Process

Budget Methods and Practices

Federal Budget Structures and Institutions

State and Local Governments

Budget Classifications, Systems, and Reform: Trying to Make Better Choices

Capital Budgeting, Time Value of Money, and Cost-Benefit Analysis: Process, Structure, and Basic Tools

Taxation: Criteria for Evaluating Revenue Options

Major Tax Structures: Income Taxes

Major Tax Structures: Taxes on Goods and Services

Major Tax Structures: Property Taxes

Revenue From User Fees, User Charges, and Sales by Public Monopolies

Revenue Forecasts, Revenue Estimates, and Tax Expenditure Budgets

Debt Administration

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Exam 14: Intergovernmental Fiscal Relations: Diversity and Coordination

The Correspondence Principle says:

The Omnibus Reconciliation Acts of 1981 changed the intergovernmental assistance system by:

An example of HORIZONTAL IMBALANCE in terms of own source funding at lower levels of government is:

The Principle of Subsidiarity says:

A federal categorical grant program to state governments is intended primarily:

The principles of subsidiarity and correspondence are used to:

Which of the following is NOT an argument for centralization of sovereign powers?

Fundamental Principles of Public Finance

The Logic of the Budget Process

Budget Methods and Practices

Federal Budget Structures and Institutions

State and Local Governments

Budget Classifications, Systems, and Reform: Trying to Make Better Choices

Capital Budgeting, Time Value of Money, and Cost-Benefit Analysis: Process, Structure, and Basic Tools

Taxation: Criteria for Evaluating Revenue Options

Major Tax Structures: Income Taxes

Major Tax Structures: Taxes on Goods and Services

Major Tax Structures: Property Taxes

Revenue From User Fees, User Charges, and Sales by Public Monopolies

Revenue Forecasts, Revenue Estimates, and Tax Expenditure Budgets

Debt Administration

Filters