Which of the Following Does Not Lessen Intergovernmental Competition

question 22

Multiple Choice

Which of the following does not lessen intergovernmental competition?

• A)direct intergovernmental grants
• B)direct regulations
• C)the decline in school districts
• D)decline in local tax receipts

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Definitions:

Capital Rationing

The process of selecting profitable projects to invest in, limited by the availability of funds.

NPV

Net Present Value, a financial metric used to evaluate the profitability of an investment, considering the time value of money.

Mutually Exclusive

Events or decisions that cannot occur or be taken simultaneously; selecting one option precludes the choice of the other.

Profitability Index

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