What Are the Two Ways to Scale Down the Federal

question 31

Multiple Choice

What are the two ways to scale down the federal government's size?

• A) slimming down government activities or transferring them away from the government
• B) creating offices to manage multiple agencies or transferring those offices away from the government
• C) reducing the funds available to the agencies or slimming down the government
• D) reducing the funds available and streamlining the process of managing the agencies
• E) reducing the funds available to the agencies or creating special commissions to reduce government size

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Definitions:

Average Fixed Cost

Production's unchanging charges, unaffected by output levels, divided by the total output quantity.

Average Variable Cost

The cost a company incurs to produce one additional unit of a product, calculated by dividing the total variable costs by the number of units produced.

Average Variable Cost

The cost per unit of variable inputs (like labor or materials) for producing a good, which changes with the level of output.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, or insurance.