Which of the Following Statements About National Grants Is True

question 47

Multiple Choice

Which of the following statements about national grants is true?

• A)To supply state and local governments with revenue is the most important purpose of national grants.
• B)The purpose of national grants is to maximize the growth of national agencies.
• C)National grants establish maximum national standards for such things as highways and clean air.
• D)The four types of national grants are always combined within a single program area.
• E)The national government often mixes and matches the grant types to accomplish its goals.

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Definitions:

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specified time frame.

Price Elastic

Price elasticity refers to the degree to which the quantity demanded of a good or service changes in response to a change in its price.

Availability of Substitutes

The presence of alternative products or services that can satisfy the same needs or wants as the original product.

Own Price Elasticity

Measures the responsiveness of the quantity demanded of a good to a change in its own price.