Based on typical charts comparing federal and state revenues, in what way are federal and state revenues similar?

• A. Both rely heavily on tax income as their primary source of revenue.
• B. Both depend primarily on revenue from selling government-owned land.
• C. Both receive most of their revenue from international trade tariffs.
• D. Both are funded mainly by donations from private citizens.

Answer: (A)

Verified step by step guidance

1. Understand the main sources of revenue for both federal and state governments. Typically, these include taxes, fees, and other income sources.
2. Recall that federal and state governments primarily generate revenue through taxation, such as income taxes, sales taxes, and property taxes (more common at the state level).
3. Recognize that selling government-owned land is not a major or consistent source of revenue for either federal or state governments.
4. Note that international trade tariffs are mainly a federal revenue source, not a state revenue source, since states do not control trade policy.
5. Understand that donations from private citizens are not a significant or primary source of revenue for either level of government.