Which statement is true? \((\mathrm{LOl}, 5)\) a) There is no overlap between the duties of local government and private businesses. b) Medicare and Medicaid spending account for over 20 percent of the federal budget. c) We spend as much on defense than do the rest of the world's nations combined. d) Although President George W. Bush cut the tax rates of the rich, they generally ended up paying more taxes because they were willing to work more hours.

There is no overlap between the duties of local government and private businesses. This statement suggests that the duties of local government and private businesses are entirely separate and independent. However, this is not accurate. In some cases, local governments may outsource services to private businesses or collaborate on certain projects, creating an overlap. Therefore, statement A is not true.

Medicare and Medicaid spending account for over 20 percent of the federal budget. This statement claims that spending on Medicare and Medicaid makes up more than 20% of the federal budget. Historically, this is accurate, and these programs have been among the largest components of the federal budget. For example, in recent years, these two programs have accounted for roughly 25% of federal spending. Therefore, statement B is true.

We spend as much on defense than do the rest of the world's nations combined. This statement suggests that defense spending is equal to the defense spending of all other nations combined. While the United States is the largest spender on defense worldwide, total spending is not equal to the collective spending of the rest of the world's nations. Various sources indicate that the United States defense spending is about a third of the world's defense spending. Consequently, statement C is not true.

Although President George W. Bush cut the tax rates of the rich, they generally ended up paying more taxes because they were willing to work more hours. This statement claims that despite lower tax rates under President George W. Bush, the wealthy individuals in the United States ended up paying more taxes due to an increase in work hours. While tax cuts for top earners were implemented during the Bush administration, there is a lack of concrete evidence correlating these cuts to an increase in work hours and, consequently, higher tax contributions. Thus, statement D is not true. Based on the analysis of each statement, the correct answer is: b) Medicare and Medicaid spending account for over 20 percent of the federal budget.