In Budgeting Revenues,state and Local Government Administrators Should

question 48

Multiple Choice

In budgeting revenues,state and local government administrators should:

• A) Be cautious not to utilize unauthorized sources or exceed authorized ceilings on revenues from specific sources.
• B) Ensure that at least the amount of revenues needed to meet spending needs are raised, even if authorized ceilings on some revenue sources must be exceeded.
• C) Utilize all authorized revenues sources at the maximum amount allowed by law.
• D) Ignore "other financing sources" since these resource inflows are not available for appropriation.

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Definitions:

Price Elasticity of Demand Coefficient

A metric that determines how the demand for a product reacts to adjustments in its price.

Midpoint Formula

A mathematical method used to calculate the average or midpoint of two points on a line, often used in economics to find the elasticity of demand.

Resource Costs

The expenses associated with the acquisition and use of raw materials, labor, and other inputs required for the production of goods or services.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of demand to price changes.