QUESTION IMAGE
Question
many communities today are concerned with their local government’s ability to appropriately manage the taxes it collects. if a government doesn’t use all of the tax money it collects in taxes on existing expenditures, it may end u with extra money, called surplus. which of the following could result in a county government budget in surplus?
a. the government gives $100,000 to build and maintain a new sight - seeing attraction without adjusting existing expenditures.
b. the government lowers sales and property taxes to satisfy taxpayers without adjusting expenditures.
c. the government gives financial assistance to a neighboring county without adjusting taxes.
d. the government reduces public transportation costs by switching to propane - run buses without adjusting taxes.
please select the best answer from the choices provided
○ a
○ b
○ c
○ d
To determine which option leads to a budget surplus, we analyze each choice:
- Option A: Spending money on a new attraction (without adjusting existing spending) increases expenditures, likely leading to a deficit, not surplus.
- Option B: Lowering taxes reduces revenue (without adjusting spending), so revenue decreases while spending stays, leading to deficit.
- Option C: Giving financial assistance to another county is an additional expenditure (without tax adjustment), increasing spending and likely causing deficit.
- Option D: Reducing public transportation costs (by switching to propane - run buses) decreases expenditures. Since taxes are not adjusted (revenue stays the same), with lower spending and same revenue, there will be extra money (surplus).
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D. The government reduces public transportation costs by switching to propane - run buses without adjusting taxes.