2
QuizMultiple Choice

Tax Basics

Question 2 • Financial Math - MA2007

Many communities today are concerned with their local government’s ability to appropriately manage the taxes it collects. If a government spends more money on expenditures than it collects in taxes, it may end up with not enough money, called deficit. Which of the following could result in a county government budget in deficit? a.The government raises sales and property taxes without adjusting expenditures.b.The county closes a fire station, reducing expenditures, without adjusting taxes.c.The county gives all public school teachers a $2,000 raise without adjusting taxes.d.The county collects donations to build a fountain in city hall.

Answer
A
A
B
B
C
C
D
D
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