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Problem 1: Most commonly, budgeting is considered to be _____________ .
a. rational
b. zero-based
c. incremental
d. all of the above
Problem 2: Which of the following is a way that local governments can seek to promote economic growth?
a. Lower the proportion of deposits that banks within the city must keep in reserve.
b. Reduce tax rates or exempt from taxation companies agreeing to do business within the city.
c. Physical infrastructure improvements that make the jurisdiction attractive to businesses looking to relocate.
d. All of the above
e. b and c, but not a
Problem 3: Public budgets are much more constrained in comparison with private sector budgets because there often are rules about the purposes for which revenue can be spent and the time frame in which it can be spent.
True
False
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