One of the Reasons That Gray Davis Was Recalled in 2003

question 3

Multiple Choice

One of the reasons that Gray Davis was recalled in 2003 was because he

• A) offered corporations too many tax breaks.
• B) was held responsible for higher electricity rates and blackouts.
• C) increased the cost of earthquake insurance in California.
• D) failed to address the state's water shortage.

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced; it varies with production levels.

Average Total Cost

The total cost of production divided by the total quantity produced; a measure of per-unit production cost.

Economic Loss

A situation where the costs of producing a good or service exceed the revenue gained from selling it, resulting in financial loss.

Economic Loss

A situation where the total costs of a business or activity exceed the total revenues, indicating a negative financial performance.