A Measure of Whether the Government Lived Within Its Means

question 28

Multiple Choice

A measure of whether the government lived within its means in the measurement year, or was required to use prior year resources to fund a portion of current year costs, or shifted the funding of some current year costs to future periods, is:

• A) Business-type activities revenues/business-type activities expenses.
• B) Unrestricted net position/total revenues.
• C) Net revenues/total expenses.
• D) Total net position (governmental activities and business-type activities) less total net position at the beginning of the year divided by beginning net position.

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Definitions:

Patent Protection

Legal rights granted to inventors preventing others from making, using, or selling their invention for a limited period.

United States

A country located in North America, consisting of 50 states and a federal district, known for its significant influence on global economy, culture, and politics.

Net Social Gain

The overall benefit to society, measuring the difference between total benefits and total costs when any action or policy is implemented.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.