Which of the Following Is NOT True Regarding Trends in State

question 6

Multiple Choice

Which of the following is NOT true regarding trends in state and local revenues?

• A) Federal revenues sent to the states play a larger role in state budgets than 50 years ago.
• B) States now collect about twice as much of their overall revenues from income taxes than 50 years ago.
• C) States have not been as reliant on fees and charges to fill out their revenue portfolios since the 1980s.
• D) A much smaller proportion of state revenue is now generated by selective sales taxes on gasoline.

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Definitions:

Tobacco Farming

The agricultural process of growing and harvesting tobacco leaves, which are then processed for use in products like cigarettes.

Perfectly Inelastic

A situation where the quantity demanded or supplied does not change in response to a change in price.

Excise Tax

A specific tax levied on certain goods, services, or transactions, often included in the price of products like alcohol, tobacco, and fuel.

Upward-Sloping

A market scenario where the quantity supplied by producers increases as the price of the good increases, illustrating the direct relationship between price and supply.