Which of the Following Statements Is Not True

question 14

Multiple Choice

Which of the following statements is not true?

• A)It is difficult to compare government expenditure across countries because of the varying degrees of "off budget" government activities.
• B)Government expenditure as a percentage of GDP is higher in the United States than in Ireland.
• C)The United States has experience significant expenditure growth at the federal,state,and local levels during the 20th century.
• D)Significant expenditure growth at the federal,state,and local levels during the 20th century has given the United States one of the highest levels of government expenditures as a percentage of GDP among similar countries.

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Definitions:

Useful Life

Useful life is the estimated time period that an asset is expected to be useful for the operations of a business before it is fully depreciated.

Profitability Index

A financial tool used to determine the desirability of an investment or project, calculated as the present value of future cash flows divided by the initial investment.

Present Value

The present value of a future amount of money or series of payments, calculated based on a certain rate of return.

Initial Investment

The amount of money used to start a business or project.