Question

What is the major difference between the revenues and expenditures of state and local governments and the revenues and expenditures of the federal government?
a. Unlike state and local governments, the federal government does not receive tax revenue and does not spend a significant amount of its money on healthcare; the federal government’s largest source of revenue and greatest expenditure are intergovernmental revenue and federal employee salaries, respectively.


b. Unlike state and local governments, the federal government does not receive payroll taxes and does not spend a significant amount of its money on national defense; the federal government’s largest source of revenue and greatest expenditure are estate taxes and interest on the national debt, respectively.


c. Unlike state and local governments, the federal government does not receive intergovernmental revenue and does not spend a significant amount of its money on education; the federal government’s largest source of revenue and greatest expenditure are personal income taxes and national defense, respectively.


d. Unlike state and local governments, the federal government does not receive taxes from corporations and does not spend a significant amount of its money on income security programs; the federal government’s largest source of revenue and greatest expenditure are interest on government loans and customs duties, respectively.

Answer 1

Answer:

Unlike state and local governments, the federal government does not receive intergovernmental revenue and does not spend a significant amount of its money on education; the federal government’s largest source of revenue and greatest expenditure are personal income taxes and national defense, respectively.