Among the Major Spending Categories for State and Local Governments,which

question 139

Multiple Choice

Among the major spending categories for state and local governments,which of the following statements is correct?

• A) The biggest single expenditure is education.
• B) The public welfare category does not include the costs of administering some federal programs.
• C) As a general rule, spending on public schools and public universities exceeds that spent on all other services combined.
• D) Local services such as libraries, police, trash removal, fire protection, and park maintenance, are a very small share of expenditures overall.

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Definitions:

Minimum Required Rate

The lowest acceptable return on investment or performance measure that a company or investor expects to achieve.

Operating Assets

Resources owned by a business that are used in its day-to-day operations to generate income.

Residual Income

Income that remains after subtracting all the cost of capital from the net operating profit.

Investment Opportunity

Any vehicle through which funds can be invested to potentially earn a return, such as stocks, bonds, real estate, or a business venture.