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Multiple Choice Quiz

  1. What is the largest source of revenue for states?
      a. Personal income tax
      b. Property tax
      c. License fees
      d. Sales and gross receipt tax
  2. Are corporate income taxes graduated or flat rate taxes?
      a. Graduated
      b. Flat rate
      c. Depends on the state
      d. Neither—it uses a different rate system
  3. What are the two biggest areas of state expenditures?
      a. Welfare and corrections
      b. Corrections and education
      c. Welfare and education
      d. Education and healthcare
  4. Competitive and block grants are examples of what kind of government funding?
      a. Federal taxes
      b. Federal grants-in-aid
      c. State taxes
      d. None of the above
  5. Which of the following is NOT an example of a budget reform?
      a. Debt limitation measures
      b. Tax limitation measures
      c. Performance-based budgeting
      d. Line-item veto
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