Since 1977,the Percentage of Money Spent by the State on Highway

question 23

Multiple Choice

Since 1977,the percentage of money spent by the state on highway expenditures has _____.

• A)increased dramatically, as aging highways have needed to be replaced
• B)increased, but only narrowly
• C)remained almost exactly the same
• D)declined, but only narrowly
• E)declined dramatically, resulting in the state having many poorly maintained roads

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Definitions:

Income Effect

The change in an individual’s or economy’s income and how that change affects the quantity demanded of a good or service.

Hourly Wage

The amount of money paid for each hour of work, often set by an employer or by legal minimum wage laws.

Substitution Effect

The economic principle that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.

Income Effect

Variations in the income of an individual or an economy and the subsequent effects on the demand for goods or services.