many communities today are concerned with their local governments ability to appropriately manage the taxes…

many communities today are concerned with their local governments 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. please select the best answer from the choices provided

many communities today are concerned with their local governments 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. please select the best answer from the choices provided

Answer

Brief Explanations:

A budget deficit occurs when expenditures exceed revenues. Raising taxes without adjusting expenditures (a) increases revenue and may reduce deficit. Closing a fire - station and reducing expenditures without adjusting taxes (b) decreases expenditures and may reduce deficit. Collecting donations (d) is an additional revenue source and doesn't cause deficit. Giving public school teachers a raise without adjusting taxes (c) increases expenditures while revenues remain the same, which can lead to a budget deficit.

Answer:

C