The Largest Single Portion of State and Local Budgets Is

question 140

Multiple Choice

The largest single portion of state and local budgets is devoted to

• A)state and local defense.
• B)health and public welfare programs.
• C)state and local unemployment compensation.
• D)education.
• E)interest payments on state and local debt.

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Definitions:

Marginal Revenue

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

Competitive Price-Taker

A market participant who accepts the prevailing market prices as given because they have no power to influence those prices due to intense competition.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Profit Maximized

The point at which a firm achieves the highest profit possible, considering the level of output and cost of production.