The Alternatives of the Active Versus Passive View of Stabilization

question 203

Multiple Choice

The alternatives of the active versus passive view of stabilization policy are usually expressed as

• A)fiscal policy versus monetary policy.
• B)internal versus external.
• C)present value versus future value.
• D)discretion versus rules.

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Definitions:

Overhead

The ongoing business expenses not directly attributed to creating a product or service.

Operating Profit

The profit earned from a firm's normal business operations, excluding deductions of taxes and interest.

Markdown

A reduction in the selling price of goods or services, often used as a sales strategy to encourage consumer purchases or to clear older stock.

Mark-up

The difference between the cost of a product or service and its selling price, expressed as a percentage of the cost.