16. Zero-based budgeting refers to a) a tax where the ratio of tax to income increases as a taxpayer's income rises b) numeric codes used by governments to classify expenditures by categories c) a type of budgeting where a program's continued existence is not assumed and all expenditures, not just new ones, must be justified every year d) a type of budgeting that reports the items to be purchased by a government, and the amount of money that will be spent on each item 17. The two main types of bonds issued to finance public capital investments are: a general obligation (GO) bonds and revenue bonds b) revenue bonds and investment bonds o general obligation (GO) bonds and investment bonds d) tax bonds and non-tax bonds 18. Local governments use both Pay as you go (PAY- GO) and Pay as you use" (PAY-USE) strategies to budget for capital improvements. Which of the following statements is incorrect? a) Financing capital projects through annual debt payments allows costs to be borne by taxpayers who are benefitting from facilities used to provide services b) Debt financing can be used to pay for regular ongoing maintenance of new facilities c) Appropriating the full cost of capital projects in a single year is likely to leave insufficient funding for recurring government costs d) Planned capital improvement projects that have not yet begun construction can be reduced or eliminated from the budget if a revenue shortfall occurs