Which Statement Is True

question 169

Multiple Choice

Which statement is true?

• A)Foreign aid is the fourth largest spending item in the federal budget.
• B)Nearly half of federal government spending goes for direct payments to individuals.
• C)Over half of all federal tax receipts comes from the personal income tax.
• D)Defense spending per capita is less than most other industrial countries.

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Definitions:

Policy Rules

Guidelines or protocols that dictate the actions of an organization or government in specific situations to achieve desired outcomes.

Laffer Curve

A theory that suggests there exists an optimal tax rate which maximizes government revenue without deterring economic growth, demonstrating the trade-off between tax rates and taxable income.

Tax Rates

Tax rates are the percentages at which an individual or corporation is taxed, varying by income level, economic activity, or type of good.

Tax Revenues

The financial earnings governments receive through taxing.