many communities today are concerned with their local government’s ability to appropriately manage the taxes…

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 up with extra money, called surplus. which of the following could result in a county government budget in surplus?\na. the government gives $100,000 to build and maintain a new sight - seeing attraction without adjusting existing expenditures.\nb. the government lowers sales and property taxes to satisfy taxpayers without adjusting expenditures.\nc. the government gives financial assistance to a neighboring county without adjusting taxes.\nd. the government reduces public transportation costs by switching to propane - run buses without adjusting taxes.\nplease select the best answer from the choices provided\na\nb\nc\nd

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 up with extra money, called surplus. which of the following could result in a county government budget in surplus?\na. the government gives $100,000 to build and maintain a new sight - seeing attraction without adjusting existing expenditures.\nb. the government lowers sales and property taxes to satisfy taxpayers without adjusting expenditures.\nc. the government gives financial assistance to a neighboring county without adjusting taxes.\nd. the government reduces public transportation costs by switching to propane - run buses without adjusting taxes.\nplease select the best answer from the choices provided\na\nb\nc\nd

Answer

Brief Explanations:

To determine what causes a budget surplus (revenue > expenditures), analyze each option:

  • Option A: Spending $100,000 on a new attraction without adjusting existing spending increases expenditures, which would likely decrease or not create a surplus.
  • Option B: Lowering taxes reduces revenue without adjusting expenditures, so revenue would be less, making a surplus less likely.
  • Option C: Giving financial assistance to another county increases expenditures without adjusting taxes (revenue), so this increases spending, not surplus.
  • Option D: Reducing public transportation costs (decreasing expenditures) without adjusting taxes (revenue) means revenue stays the same and expenditures decrease. This creates a situation where revenue > new (lower) expenditures, leading to a surplus.

Answer:

D. The government reduces public transportation costs by switching to propane - run buses without adjusting taxes.