When Asked in a Recent National Poll Whether Federal Spending

question 5

Multiple Choice

When asked in a recent national poll whether federal spending should be "increased,decreased or kept about the same" for eighteen different purposes,respondents said that every category of spending should be maintained or increased except ____________________.

• A)​highways, military defense and foreign aid
• B)​welfare, unemployment aid and the space program
• C)​education, aid to the world's needy, and child care
• D)​military defense, unemployment aid, and aid to the world's needy
• E)​Respondents believed every category of spending should be maintained or increased.

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Definitions:

Pricing Constraints

Factors that limit the flexibility of setting prices, including costs, competition, customer perception of value, and regulatory requirements.

Break-even Formula

A calculation to determine when a business or product will be able to cover its costs and begin to make a profit.

Fixed Costs

Business expenses that remain constant regardless of the volume of goods or services produced, such as rent, salaries, and insurance.

Unit Variable Costs

The cost associated with producing one additional unit of a product or service.