Government Officials of Country Z Estimate That Next Year's Public

question 59

Multiple Choice

Government officials of Country Z estimate that next year's public programs will cost $19 million but that tax revenues will be only $15 million. Which of the following statements is false?

• A) Country Z's tax system is sufficient.
• B) Country Z's government is engaging in deficit spending.
• C) If Country Z must borrow $4 million to pay for its public programs, its national debt will increase by $4 million.
• D) Country Z's government could balance its budget by eliminating a program that costs $4 million.

---

Definitions:

Pricing Services

The process of determining the price at which services will be offered to customers, considering cost, value, demand, and competition.

Yield Management Systems

Systems used by companies, especially in the hospitality and airline industries, to adjust prices and availability of products or services in response to market demand, maximizing revenue.

Capacity Utilization

Refers to the percentage of total production capacity that is actually being used by a company over a specific period.

Mass Customization

A marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.