The Budget Control Act of 2011 Did Which of the Following

question 20

Multiple Choice

The Budget Control Act of 2011 did which of the following:

• A) Provided for a balanced federal budget by fiscal 2013.
• B) Established a PAYGO system for all federal tax and expenditure proposals.
• C) Increased the federal debt ceiling.
• D) Required that federal entitlement programs be reduced by 5 percent for the next three years.

---

Definitions:

Minimum Efficient Scale

The minimum efficient scale is the lowest point of production where a firm can achieve the economies of scale, reducing its cost per unit to the minimum.

Economic Profits

The surplus or profit gained by a firm after subtracting all its costs, including both explicit and implicit costs, from its total revenues.

Accounting Profits

The net income for a company calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Short Run

A period of time in economics during which at least one input, such as plant size, is fixed and cannot be changed.