1.the operation of state-run businesses
a. can lead to citizens being charged for unwanted services.
b. requires the approval of the federal government.
c. generates revenue for state-funded services.
d. results in higher taxes for state-funded services.
2. adam smith's four principles of sound taxation are important at all levels of government because they
a. establish parameters for taxation whereby all individuals contribute equally to the support of the government.
b. establish parameters for taxation that reflect standards of equality, convenience, economy, and reliability.
c. support parameters for taxation where the bulk of funds are raised primarily from wealthy citizens.
d. establish parameters for taxation where individuals who enjoy more government benefits pay more.
3. one reason that the u. s. constitution places limits on the power of state and local governments to tax is to ensure that
a. the u. s. congress has sufficient taxing power to raise needed funds.
b. the federal government can remain financially strong even during difficult times.
c. states cannot overly burden their local governments with taxes.
d. the states do not have the power to destroy the federal government through taxation.
4. which of the following places the last three steps of the budget process in the correct sequence?

a. the legislature reviews the budget and appropriates funds; the governor presents the budget to the legislature; the governor supervises the execution of the budget
b. the governor presents the budget to the legislature; the legislature reviews the budget and appropriates funds; the governor supervises the execution of the budget
c. the governor supervises the execution of the budget; the legislature reviews the budget and appropriates funds; the governor presents the budget to the legislature
d. the legislature reviews the budget and appropriates funds; the governor supervises the execution of the budget; the governor presents the budget to the legislature
5. the power of state and local governments to borrow money is often limited by

a. a state's own constitution.
b. the u. s. constitution.
c. the state's ability to repay the loan.
d. the state budget.