Which of the Following Is a Way in Which a Government

question 117

Multiple Choice

Which of the following is a way in which a government could encourage spending on research and development?

• A) Increase the tax rate on capital gains
• B) Enhance patent protection
• C) Decrease funding to universities
• D) Increase the tax on corporate profits
• E) Increase the budget deficit

---

Definitions:

Cost Formula

An equation used to predict costs at different levels of activity, typically encompassing both fixed and variable components.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for a more accurate comparison of actual performance to budgeted performance.

Total Expenses

The sum of all costs and expenses incurred by a business in a given period.

Fixed Cost

Expenses that remain constant regardless of production or sales volumes, including rent, salaries, and insurance premiums.