Which Problem Has Been Found Recently in the System of Special

question 51

Multiple Choice

Which problem has been found recently in the system of special districts?

• A) State investigations have discovered numerous "phantom districts" that do not provide a service, yet bill the local counties for administrative costs.
• B) Real estate developers have moved a few people onto land, rent free, who then vote for huge bond measures that future residents are obliged to pay.
• C) The special districts for homeland security throughout Texas were uncoordinated and ill-prepared for September 11.
• D) There has been widespread corruption among board members receiving bribes from citizens to lower their user fees.
• E) Some districts have dealt with people buying property just outside the district boundaries and then demanding services from the district without having to pay for them.

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Definitions:

Variable Cost

Costs that fluctuate with the level of production or sales, such as raw materials or commission fees.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales activities within a certain range or period.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no net loss or gain.

Variable Expenses

Expenses that change in proportion to the amount of goods produced, including materials and wages directly associated with manufacturing.