Question

1.Local property taxes are used to provide

a. education.

b. fire protection.

c. libraries.

d. all of the above.

2.Controlling the growth of government can be difficult because

a. of commitments made by past governments.

b. governments do not like increasing taxes.

c. of strict budgetary rules.

d. of all of above.

3.Advantages of a decentralized system include(s)

a. fostering intergovernmental competition.

b. tailoring government to local tastes.

c. intercommunity externalities.

d. both A and B.

4.__________ explores the roles of different level of government and the ways in which they relate to each other.

a. The federal system

b. The club model

c. Centralization

d. Fiscal federalism

5.Net fiscal benefits are

a. an economic theory and not present in the real world.

b. when government action is not required to achieve efficiency.

c. the value of publicly provided services minus their cost to the recipient of those services.

d. all of the above.

Answer 1

1 - Option B

Fire protection

The property taxes will be used to provide the property related facilities.

2 - Option D

All the above options are correct

3 - Option D

Both A and B

The government can share its power down to the local levels hence increasing the efficiency of governance.

4 - Option A

The federal system

The system consists of more than 1 level of government in which each level has its own jurisdiction and roles to play.

5 - Option C

The value of the publicly provided services minus their cost to the recipient of those services .