Which One of the Following Is an Example of Fiscal

question 17

Multiple Choice

Which one of the following is an example of fiscal federalism?

• A) National government officials threaten to tax state governments to steer state officials toward accepting a desired federal policy.
• B) National government officials issue federal funds to state governments to encourage state officials to meet certain policy requirements.
• C) National government officials require states to increase taxes to meet federal mandates.
• D) National government officials lend money to the states on a temporary basis.

---

Definitions:

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Fixed Cost

A fixed cost is a business expense that remains constant regardless of the volume of goods or services produced by an entity.

Insurance Premiums

Payments made to an insurance company in exchange for coverage, protecting against financial losses from specified risks.

Production Workers

Employees involved in the direct manufacturing of goods, including assembly line workers, machine operators, and craftsmen.