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:

Incentive To Work

Refers to the factors (monetary and non-monetary) that motivate individuals to seek and maintain employment.

Negative Income Tax

A proposed system of income support that involves the government paying a guaranteed income to those earning below a certain threshold, essentially a form of welfare.

Two-Tiered Plan

An arrangement or plan that has two levels of operation, benefits, or charges, often used in healthcare, compensation, or service delivery models.

Libertarians

Individuals who advocate for minimal government intervention in the private lives of citizens and emphasize individual freedom and voluntary association.