Fiscal Federalism High School Civics Exam Questions and Answers

📚 Quick Study Guide

• 🏛️ Definition: Fiscal federalism is the financial relationship between the federal government and state/local governments.
• 💰 Federal Grants: These are funds provided by the federal government to state and local governments for specific purposes.
• 📊 Types of Grants:
  • 🎯 Categorical Grants: For specific purposes (e.g., education, infrastructure).
  • 🧱 Block Grants: More flexible; states have broader discretion in how to use the funds.
• ⚖️ Revenue Sharing: Distribution of a portion of federal tax revenue to state and local governments.
• 🧾 Taxation: Federal, state, and local governments all have the power to tax.
• 📜 Constitutional Basis: The Tenth Amendment reserves powers not delegated to the federal government to the states.
• 💡 Key Issues: Debates often revolve around the balance of power, efficiency, and equity in resource allocation.

🧪 Practice Quiz

1. Which of the following best defines fiscal federalism?
   1. A) The division of power between the three branches of the federal government.
   2. B) The financial relationship between the federal government and state/local governments.
   3. C) The process of amending the U.S. Constitution.
   4. D) The conduct of foreign policy by the federal government.
2. What is a categorical grant?
   1. A) A grant with no specific purpose.
   2. B) A grant for a broadly defined purpose, giving states discretion.
   3. C) A grant for a specific purpose, like education or infrastructure.
   4. D) A grant exclusively for law enforcement.
3. Which type of grant gives states the MOST discretion in how to use the funds?
   1. A) Categorical grant
   2. B) Block grant
   3. C) Revenue sharing
   4. D) Mandate
4. The Tenth Amendment to the U.S. Constitution is often cited in discussions of fiscal federalism because it:
   1. A) Establishes the federal income tax.
   2. B) Reserves powers not delegated to the federal government to the states.
   3. C) Guarantees equal protection under the law.
   4. D) Defines the powers of the presidency.
5. What is revenue sharing?
   1. A) A system where states collect taxes for the federal government.
   2. B) A system where the federal government distributes a portion of its tax revenue to state and local governments.
   3. C) A system where local governments share revenue with each other.
   4. D) A system where states share revenue with each other.
6. Which level(s) of government have the power to tax in the United States?
   1. A) Federal only
   2. B) State only
   3. C) Local only
   4. D) Federal, state, and local
7. A debate over whether the federal government should provide more funding for education with fewer strings attached is MOST related to which concept?
   1. A) National Security
   2. B) Fiscal Federalism
   3. C) Monetary Policy
   4. D) Foreign Policy