Use the Following to Answer Questions

question 66

Multiple Choice

Use the following to answer questions:
-(Table: Costs of Birthday Cakes) Look at the table Costs of Birthday Cakes. Assume that fixed costs are $10. What is the marginal cost of the fourth cake?

• A) $8
• B) $10
• C) $25
• D) $35

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Definitions:

Full Employment

A situation in an economy when all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical unemployment.

Annual Deficit

The shortfall in a government's income compared to its spending in a given fiscal year.

George Bush

Refers to either George H.W. Bush, the 41st President of the United States (1989-1993), or his son George W. Bush, the 43rd President of the United States (2001-2009), each having made lasting impacts on American and international politics.

Crowding-in

An economic phenomenon where increased government spending leads to higher private sector investment.