During Recessions,automatic Stabilizers Tend to Make the Government's Budget

question 57

Multiple Choice

During recessions,automatic stabilizers tend to make the government's budget

• A)move toward deficit.
• B)move toward surplus.
• C)move toward balance.
• D)not necessarily move the budget in any particular direction.

Determine cost of goods sold from available financial information.

Perform comprehensive analysis to prepare financial statements including income statement and balance sheet related to manufacturing accounts.

Compute sales revenue and expenses impacting net income.

Analyze changes in inventory accounts and their effects on cost of goods sold and manufactured.

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Definitions:

Marginal Revenue

The increased income from the sale of one additional unit of a good or service.

Average Fixed Cost

Total fixed cost divided by the number of units produced. It always declines as output increases.

Price-Taker Firm

A company that must accept the market price of its product without having the influence to change it, typically because the market is highly competitive and the product is undifferentiated.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are close substitutes, leading to price competition and efficiency.