Funds That Are Given by Congress to States and Localities

question 64

Multiple Choice

Funds that are given by Congress to states and localities and that may only be spent on narrowly defined purposes are known as:

• A) categorical grants.
• B) block grants.
• C) project grants.
• D) community development grants

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Definitions:

Consumption

The act of using goods and services to satisfy needs and wants, which is a fundamental component of economics.

Income

The money received by an individual or business for services provided, products sold, or investments.

Interest Rate

The cost of borrowing money or the return on investment, expressed as a percentage of the principal, over a specific time period.

Utility Function

A mathematical representation of how different bundles of goods or services provide varying levels of satisfaction or utility to a consumer.