Increasing the Number of People the Government Allows into the Country

question 8

Multiple Choice

Increasing the number of people the government allows into the country through immigration may be important to Australian businesses because:

• A) it may stimulate demand for new products and services.
• B) it may increase the diversity of skills of workers.
• C) it may affect the overall level of consumer spending.
• D) it may force businesses to rethink the way they promote their products and services.
• E) All of these responses are correct.

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Definitions:

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a good or service, often varying with the level of production.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent or salaries.

Total Fixed Costs

The sum of all costs that remain constant regardless of any change in a company's production volume.