Of the Costs Listed Below, Which Would Most Likely Be

question 80

Multiple Choice

Of the costs listed below, which would most likely be considered as a discretionary fixed cost?

• A)Research costs for new manufacturing products.
• B)Depreciation of factory building.
• C)Insurance for the factory building.
• D)Property taxes for factory.

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Definitions:

Monetary Neutrality

The theory that changes in the money supply only affect nominal variables (like prices) and not real variables (like output) in the long run.

Phillips Curve

An economic concept depicting an inverse relationship between the rate of unemployment and the rate of inflation in an economy over time.

Friedman and Phelps

Refers to the contributions of Milton Friedman and Edmund Phelps in economics, particularly their work on the natural rate of unemployment and the expectations-augmented Phillips Curve, disputing the long-term trade-off between inflation and unemployment.

Government Expenditures

The total amount of money spent by the government on goods, services, and public projects.