Reference no: EM132959072

Problem 1: One advantage of incremental budgeting is that it sidesteps problems posed by disagreement on values and objectives so that only adjustments on the margin need to be debated and agreed upon.

True

False

Problem 2: Which of the following items would NOT be included in a capital budget?

Option 1: new building

Option 2: employee salaries

Option 3: highway construction project

Option 4: dam

Problem 3: In order to balance their budgets state governments can

Option a: pass along to local governments expenditures that the state would normally pay for (a form of state unfunded mandates).

Option b: take over local government tax revenue or require the local governments to remit money to the state.

Option c: cut state aid to local governments.

Option d: All of the above

Option e: b and c, but not a