1. Which of the following would be a reasonable component of a state capital budget? The salaries of the state planning agencies, because the impact of their efforts endures for many years. The cost of office supplies for the governor's office. None of the above. The cost of recurring purchases of motor vehicles.

2. Which of the following statements is correct? The federal government in the United States collects less money than do state governments from custom duties. The corporate income tax is the second largest source of total revenue for the federal government. The federal government in the United States relies heavily (more than 30 percent of revenue) on intergovernmental revenue. The federal government in the United States levies no general sales tax.