Question

The tax revenues of local governments are typically

a) More than their expenditures.
b) Less than one-half of their expenditures.
c) Slightly less than their expenditures.
d) Equal to their expenditures.

Answer 1

The tax revenues of local governments are slightly less than their expenditures. Local governments rely on various revenue sources, but often face budget deficits.

Step-by-step explanation:

The tax revenues of local governments are typically slightly less than their expenditures.

Local governments rely on several sources of revenue, including property taxes, sales taxes, and intergovernmental revenues from the state and federal governments. However, these revenues are often not enough to cover all of their expenditures, leading to budget deficits.

Overall, local governments aim to balance their budgets by carefully managing their revenue sources and expenditures.