Postal Service Practice Exam

The primary source of revenue for the United States Postal Service (USPS) is derived from postage sales and service revenue. This means that the money USPS earns mainly comes from the sale of postage stamps, mailing and shipping services, and various other services it provides to customers. Since USPS operates as an independent establishment of the executive branch of the U.S. government, it does not receive taxpayer funding for its operational costs; instead, the organization is expected to be self-sufficient and cover its expenses through its own income.

Postage sales and service revenue encompass a wide range of products and services, including first-class mail, priority mail, parcel services, and more specialized offerings like international shipping and shipping supplies. This revenue generation approach is vital for USPS to maintain and improve its operations, pay employees, and invest in infrastructure while providing the essential service of mail delivery to the public.

In contrast, government funding, donations, and investment income play a minimal or non-existent role in contributing to USPS's revenue streams. USPS does not rely on financial support from the government, as it strives to operate without taxpayer dollars, which differentiates it from other governmental entities that may rely on funding for operations.