Which of the Following Statements Is Not Correct

question 14

Multiple Choice

Which of the following statements is not correct?

• A)All states have state income taxes,but the percentages vary widely.
• B)Sales taxes and property taxes are important revenue sources for state and local governments.
• C)Medicare spending has increased because the percentage of the population that is elderly and the cost of healthcare have both increased.
• D)A budget deficit occurs when government spending exceeds government receipts.

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Definitions:

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a smaller opportunity cost compared to its rivals.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Total Output

The total quantity of goods or services produced by a firm or an economy in a specific period.

Comparative Advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than competitors.