Congressional Attempts to Plan for the Economic Effects of Taxing

question 82

Multiple Choice

Congressional attempts to plan for the economic effects of taxing and spending are known as:

• A) fiscal policy planning.
• B) open-market operations.
• C) progressive taxing and spending.
• D) pecuniary policy planning.

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Definitions:

Variable Costs

Costs that vary directly with the level of production output, such as materials and labor.

Lawn-mowing

The action of cutting the grass in a yard or garden to maintain its appearance and health.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, freedom of entry and exit, and perfect knowledge.

Fixed Cost

Expenses that do not change in proportion to the activity of a business, such as rent or salaries.