Which of the Following Is Likely to Occur If the Government

question 63

Multiple Choice

Which of the following is likely to occur if the government of an economy tries to reduce its structural deficit?

• A) An increase in government spending.
• B) A cut in taxes.
• C) A fall in company profits.
• D) A rise in cyclical deficit.

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Definitions:

Administrative Expense

Expenses incurred by a business that are not directly tied to a specific function such as manufacturing, production, or sales. These can include salaries of executive personnel, accounting fees, and HR services.

Budgeted Fixed Selling

Budgeted fixed selling refers to the predetermined set of expenses associated with selling a product that do not change with sales volume.

Estimated Cost

A forecast or approximation of the expenses associated with a project, product, or service.

Goods Sold

The total number of products or services that a company sells during a specific period.