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Unformatted text preview: Midterm 2 Poli 371B March 30, 2011 Multiple Choice Write your answers in your blue book. 1. ________________ is the most important source of tax revenue for local governments. A. Sales Tax B. Income Tax C. Property Tax D. Cigarette Tax 2. Which of the following is a true statement about how the major sources of US government revenues have changed over time since the 1950s? A. Payroll taxes have decreased in relative importance B. Income taxes have increased in relative importance C. Federal excise taxes have increased in relative importance D. Property taxes have decreased in relative importance 3. All of the following are examples of consumption taxes except: A. Alcohol Taxes B. Payroll Taxes C. Gasoline Taxes D. Sales Taxes 4. A tax system inefficient if it: A. places a lower tax burden on lower-income families than on higher-income families. B. places a higher tax burden on lower-income families than on higher-income families. C. causes resources to be directed away from their highest value uses in the economy D. raises less revenue at a lower cost to taxpayers. raises less revenue at a lower cost to taxpayers....
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- Spring '11