A Requirement That the Governor's Operating Budget Be Balanced Usually

question 10

Multiple Choice

A requirement that the Governor's operating budget be balanced usually means that:

• A) All expenditure proposed in that document must be covered either by revenue raised currently, available from prior year surpluses, or by borrowing on the promise to repay from future revenues.
• B) All expenditure proposed in that document must be covered either by revenue raised currently or available from prior year surpluses.
• C) The state can have no debt.
• D) State expenditure cannot exceed state revenue for the year.

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Definitions:

Ultimate Consumer

The final user of a product or service who does not plan to resell it.

Intermediaries

Entities that act as middlemen in the distribution process between producers and consumers, such as wholesalers and retailers.

Producer

An individual or organization that creates goods or services for sale to consumers or other businesses.

Marketing Channel

A set of practices or activities necessary to transfer the ownership of goods, and to move goods from the point of production to the point of consumption.