Which of the Following Would Be a Reasonable Component of a State

question 10

Multiple Choice

Which of the following would be a reasonable component of a state capital budget?

• A) The salaries of the state planning agencies, because the impact of their efforts endures for many years.
• B) The cost of recurring purchases of motor vehicles.
• C) The cost of a new chair in the governor's office.
• D) None of the above.

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Definitions:

Demand

A relation between the price of a good and the quantity that consumers are willing and able to buy per period, other things constant.

Willing and Able

The readiness and capability of individuals or groups to engage in a particular activity.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production.

Income Effect

The variation in the income of a person or an economy and its impact on the demand for products or services.