Question

1 multiple choice 2 points
most of texass budget is ______, meaning the funds are automatically reserved for specific programs, which can make the budget difficult to adjust.
dedicated revenue
investment income
tax incidence
deficit spending

2 multiple choice 2 points
the total general sales tax in texas is typically ______.
8.25%
2%
12%
4.75%

3 multiple choice 2 points
typically, about ______ of texas state revenue comes from the federal government.
15%
75%
35%
55%

Explanation:

Analyze Question 1

The first question asks about the portion of Texas's budget that is automatically reserved for specific programs, making it difficult to adjust.

• "Dedicated revenue" refers to funds that are constitutionally or statutorily earmarked for specific purposes (such as the State Highway Fund or the Permanent School Fund). In Texas, a vast majority of the budget consists of these restricted or dedicated funds.
• "Investment income," "tax incidence," and "deficit spending" do not fit this definition.
• Therefore, the correct option is "dedicated revenue".

Analyze Question 2

The second question asks for the typical total general sales tax rate in Texas.

• The state of Texas imposes a 6.25% state sales and use tax.
• Local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities) can impose up to an additional 2% sales and use tax.
• This brings the typical maximum total general sales tax rate in most areas of Texas to 8.25%.
• Therefore, the correct option is "8.25%".

Analyze Question 3

The third question asks about the typical percentage of Texas's state revenue that comes from the federal government.

• Federal funding (grants-in-aid) is a major source of revenue for Texas, primarily supporting health and human services (like Medicaid) and transportation.
• Historically, federal funds account for approximately one-third of the total state revenue, which is closest to 35%.
• Therefore, the correct option is "35%".

Answer:

Question 1

• dedicated revenue (Correct answer)
• investment income
• tax incidence
• deficit spending

Question 2

• 8.25% (Correct answer)
• 2%
• 12%
• 4.75%

Question 3

• 15%
• 75%
• 35% (Correct answer)
• 55%