As a Result of a Successful Attempt by Government to Cut

question 119

Multiple Choice

As a result of a successful attempt by government to cut the economic pie into more equal slices,

• A)the pie gets larger,and there will be more pie overall.
• B)the pie gets smaller,and there will be less pie overall.
• C)it increases the reward for working hard,resulting in people producing more goods and services.
• D)those who earn more income pay less in taxes.

---

Definitions:

Entry Restrictions

Refers to barriers that limit the ability of new competitors to enter and compete in an industry or market.

Revenue Function

A financial formula used to calculate the total revenue generated by selling a particular quantity of goods or services.

Total Profits

The net income a company generates after paying all expenses, taxes, and costs, calculated by subtracting total costs from total revenues.

Entry Restrictions

Regulations or barriers that limit the ability of new competitors to enter and operate in a particular market.