Sticky Cakes Is a Bakery

question 23

Multiple Choice

Sticky Cakes is a bakery. A decrease in the wage rate that Sticky Cakes pays its workers

• A) does not shift its MC curve or its ATC curve.
• B) shifts its MC curve downward but not its ATC curve.
• C) shifts both its MC curve and its ATC curve downward.
• D) does not shift its MC curve but shifts its ATC curve downward.

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Definitions:

Unfunded Mandates

Regulations or requirements imposed by higher levels of government without providing corresponding funds to cover the costs.

Block Grants

Funds provided by the federal government to state and local governments to support broad purposes with relatively few restrictions on how they are spent.

Cooperative Federalism

A concept of federalism in which national, state, and local governments interact cooperatively and collectively to solve common problems.

Federal Block Grants

Federal Block Grants are large sums of money given by the federal government to state or local authorities for general purposes within a broad subject area, allowing these entities the flexibility to allocate funds as they see fit.