Which of the Following Statements Is True About the U

question 119

Multiple Choice

Which of the following statements is true about the U.S. national debt?
I. Relative to the level of economic activity, the debt is well below the levels reached during
World War II.
II. The ratio of debt to GDP rose from 1981 to 1996 and fell in the last years of the twentieth
Century; it began rising again in 2002.
III. Judged by international standards, the U.S. national debt relative to its GDP is above average among developed nations.

• A) I only
• B) II only
• C) III only
• D) I, II, and III

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Definitions:

Machine-Hours

A measure of the amount of time a machine is operated in the production process, used as a basis for allocating manufacturing overhead.

Markup

The sum added onto the purchase price of merchandise to cover both overhead expenses and profit, ultimately setting the retail price.

Predetermined Overhead Rate

A calculated rate used to assign overhead costs to products or services, based on estimated costs and activity levels.

Machine-Hours

The total time that machines are running in a production process, often used as a basis for allocating manufacturing overhead costs.