Which of the Following Trends Is Most Likely to Be

question 30

Multiple Choice

Which of the following trends is most likely to be a signal of impending fiscal stress?

• A) An increasing ratio of own source revenues to total revenues.
• B) A decreasing ratio of total revenues to total expenditures.
• C) A decreasing ratio of debt service expenditures to operating revenues.
• D) A decreasing ratio of operating expenditures to total revenues.

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Definitions:

Total Product

Total Product refers to the overall quantity of output that a firm produces, usually with respect to a given quantity of inputs over a specific period of time.

Marginal Products

The additional output produced as a result of utilizing one more unit of a particular input.

Marginal Product

It is the increase in output that results from a one-unit increase in the input, keeping all other inputs constant.

Average Product

The output per unit of a particular input, such as labor or capital, calculated by dividing total product by the quantity of input.