A(n)________ in Private Expenditures as a Result of A(n)________ in Government

question 25

Multiple Choice

A(n) ________ in private expenditures as a result of a(n) ________ in government purchases is called crowding out.

• A)increase; decrease
• B)decrease; decrease
• C)decrease; increase
• D)increase; increase

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Definitions:

COGS

Cost of Goods Sold (COGS) refers to the direct costs associated with the production of goods sold by a company, including material and labor costs.

Gross Margin

Revenue less cost where cost is spending closely associated with production. Stated in dollars or as a percent of revenue. A fundamental measure of a business’s strength.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Dividends

Monetary distributions from a company to its shareholders, often based on the profits of the business.