A Government May Have Multiple Funds for Each of the Following

question 109

Multiple Choice

A government may have multiple funds for each of the following fund types except:

• A) Permanent
• B) General
• C) Special revenue
• D) Capital projects

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Definitions:

Diseconomies of Scale

The situation in which the cost of producing each individual unit rises when a company's production volume grows, often resulting from inefficiencies and a rise in complexity.

Long-run Average Total Cost

The cost per unit of output in which all inputs, including capital, are variable, showing economies and diseconomies of scale over time.

Increasing Returns to Scale

A situation in which a proportional increase in all inputs results in a more than proportional increase in output, demonstrating economies of scale.