In Wisconsin, the Way the State Has Balanced Its Budget

question 64

Multiple Choice

In Wisconsin, the way the state has balanced its budget led to large protests. Certain interest groups claimed that they have borne an unfair amount of the financial burden. These citizens are claiming the budget lacks ______, one of the criteria used to evaluate policies.

• A) effectiveness
• B) efficiency
• C) equity
• D) administrative feasibility

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Definitions:

Cyclical Dividend Policy

A dividend payment strategy by companies that varies depending on the economic cycle, with higher payouts during economic prosperity and lower or no dividends during downturns.

Economic Growth

An increase in the production and consumption of goods and services, indicating a country's economic health.

Manufacturing Firm

A business that produces goods through the use of labor, machines, tools, and chemical or biological processing or formulation.

Reverse Stock Split

A corporate action in which a company reduces the number of its outstanding shares to increase the share price, without changing the company's overall market capitalization.