Figure 1- 2 with a Budget of $500 000,a School

question 6

Multiple Choice

Figure 1- 2 With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination) for use in classrooms.

-If some income earned by households is not spent on output,or if some income earned by firms is not spent on factor services,the circular flow of income will

• A)contract.
• B)explode.
• C)stop.
• D)expand.
• E)run over.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity, such as materials and labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

After-tax Profit

The net income remaining after all taxes have been deducted from total revenue.

NAICS Codes

North American Industrial Classification System codes that use numerical values to identify industries.