Which of the Following Would Be an Example of an Entitlement

question 24

Multiple Choice

Which of the following would be an example of an entitlement program?

• A) Federal income tax
• B) Federal student loans
• C) Medicare
• D) Medicaid
• E) An IRA

---

Definitions:

Variable Expenses Per Unit

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor costs per unit.

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, insurance, and salaries, providing predictability in budgeting.

Break-even

The point at which total costs equal total revenues, meaning there is no profit or loss.

Variable Cost

Variable cost is a cost that changes in proportion to the level of production or business activity, such as raw materials and direct labor.