Fiscal Federalism: the Size of the Public Sector Source

question 10

Multiple Choice

Fiscal Federalism: The size of the public sector Source: Office of Management and Budget,Budget of the United States Government,Fiscal Year 2017: Historical Tables (Washington,DC: U.S.Government Printing Office,2016) ,Table 14.3.
-Which of the following statements about federalism is true based on the graph?

• A)The federal government's power has grown significantly relative to the states.-Consider This: Though the federal government takes on more responsibility in times of crisis,the relationship between state and federal responsibilities has remained relatively stable.
• B)State governments are at the mercy of the federal government to secure funds.
• C)Federal and state governments carry out their own function and responsibilities.
• D)State power has supplanted federal power as dominant in the United States.

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Definitions:

Sales Taxes Payable

Liabilities for sales taxes collected from customers on behalf of governmental authorities, which are to be remitted to those authorities.

Cash Register

A mechanical or electronic device for registering and calculating transactions, often equipped with a cash drawer.

Sales Tax

A tax paid to a governing body for the sales of certain goods and services, usually collected by the retailer.

Entry Record

The documented recording of a financial transaction in an accounting system.