Which of the Following Statements Is Correct

question 83

Multiple Choice

Which of the following statements is correct?

• A)National defense and health are the two largest spending categories for the federal government.
• B)Welfare programs and highways are the two largest spending categories for state and local governments.
• C)Sales taxes and property taxes are the two most important revenue sources for state and local governments.
• D)Corporate income taxes are the largest source of revenue for the federal government.

---

Definitions:

Short Run

A period in economics where at least one factor of production is fixed, influencing the responsiveness of a company to changes in market demand.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the cost per unit of output.

Profit-maximizing

A strategy or behavior where a firm aims to achieve the highest possible profit from its operations, considering costs, revenue, and market conditions.