The Budget Enforcement Act of 1990

question 20

Multiple Choice

The Budget Enforcement Act of 1990:

• A)was a package of spending cuts and tax increases designed to reduce budget deficit.
• B)succeeded in balancing the budget cyclically.
• C)succeeded in balancing the budget within two years.
• D)identified defense and international programs as the only two areas of potential spending cuts.
• E)gave the President the authority to make unilateral spending cuts to balance the budget.

Compute margin of safety in both dollars and percentage terms.

Calculate monthly break-even points in units and total dollar sales.

Analyze the effects of advertising budget and product cost changes on net operating income.

Determine unit sales and dollar sales to attain specific target profits.

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Definitions:

Small Country Assumption

An economic model assumption that a country's market size is small enough that its actions do not affect world prices or incomes.

International Trade

The exchange of goods and services between countries, which can involve both importing and exporting.

Imported Good

A product or service that is brought into one country from another for the purpose of being sold or used, reflecting trade relationships and economic dependencies between nations.

Tax

Mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization.