Which Statement Is Most Accurate About the Sources of Revenue

question 24

Multiple Choice

Which statement is most accurate about the sources of revenue for local and state governments?

• A) Taxes generate well over one-half the total revenue of local and state governments.
• B) Property taxes generate the most tax revenue for both local and state governments.
• C) Between 30 and 40 percent of the revenue for local and state governments comes from
• D) grant money.
• E) Local and state governments generate an equal amount of revenue from issuing licenses and certificates.

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Definitions:

Consumer Utility

A measure of satisfaction or happiness that consumers derive from consuming goods and services.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford with their limited budget at set prices.

Indifference Curves

Graphical representations showing combinations of two goods that provide an individual with the same level of satisfaction, indicating preferences without implying superiority.

Slope

The measure of the steepness or incline of a line or surface, typically described as a ratio of vertical change to horizontal change.