Which of the Following Would Cause an Increase in Consumption

question 78

Multiple Choice

Which of the following would cause an increase in consumption per worker in a steady state?

• A)a permanent increase in the amount of immigration allowed into the country
• B)a permanent decrease in energy prices
• C)a reduction in the number of hours worked per person
• D)a reduction in government expenditures on the nation's infrastructure

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Definitions:

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Incremental Revenues

Additional revenue generated from a specific action or decision, comparing the difference in total revenue with and without the action.

Incremental Revenues

Additional income generated from a particular business decision or activity, beyond the existing baseline revenue.

Unavoidable Cost

A cost that cannot be eliminated and must be incurred regardless of the action taken.