Top-Down Budgeting Differs from Bottom-Up Budgeting in That the Former

question 37

Multiple Choice

Top-down budgeting differs from bottom-up budgeting in that the former ______.

• A) examines the big picture
• B) emphasizes incrementalism
• C) focuses on the size of each agency's piece of the whole compared to what other agencies receive
• D) focuses on changes as opposed to the whole budget at once.

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Definitions:

Involuntary Transactions

Economic exchanges where at least one party participates without willing consent, often resulting from coercion or lack of viable alternatives.

Economic Efficiency

A situation where all resources are allocated in a way that maximizes the net benefit to society.

Positive Externalities

Benefits experienced by third parties or the society at large as a result of an economic activity, without them directly paying for it.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.