If the Government Increased Defense Spending by $1 Million and Laid

question 52

Multiple Choice

If the government increased defense spending by $1 million and laid off enough Justice Department employees to decrease the Department of Justice budget by $1 million,which of the following is the likely net effect?

• A)An increase in the budget deficit and transfer payments
• B)An increase in the budget deficit and net taxes
• C)An increase in the budget deficit and government spending
• D)No change in the budget deficit because there is no net change in government spending
• E)No change in the budget deficit because neither defense spending nor the Department of Justice is included in government spending

Analyze and compute the average collection period.

Understand and determine the acid-test (quick) ratio.

Analyze and calculate the current ratio.

Compute and understand the significance of accounts receivable turnover.

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Definitions:

Classroom Conditioning

The process of using behavioral psychology principles to encourage learning and desirable behavior within a classroom setting.

Reinforce Behaviour

The process of encouraging or establishing a pattern of behavior by offering rewards or consequences.

Negative Reinforcement

A behavioral psychology principle where the removal of an unpleasant stimulus following a desired behavior increases the likelihood of that behavior being repeated in the future.

Punishment

A consequence that reduces the likelihood of a behavior being repeated, often used in behavioral conditioning.