If Economic Activity Increases, It Follows That Economic Welfare

question 158

Multiple Choice

If economic activity increases, it follows that economic welfare:

• A)increases as more goods and services become available.
• B)decreases as more resources are depleted.
• C)does not change since it does not depend on the level of economic activity.
• D)may increase, decrease, or remain unchanged depending on the nature of the increase in economic activity.

---

Definitions:

Unexpectedly High Earning

Financial results that surpass analysts' earnings predictions significantly, often leading to increased stock prices.

High Dividend Payout

A situation where a company pays a large portion of its earnings to shareholders in the form of dividends.

Marginal Tax Rates

The rate at which your last dollar of income is taxed, representing the tax bracket your top income falls into.

Capital Gains

are the increase in value of an investment or real estate, realized when the asset is sold for more than its purchase price.