Which of the Following Is a Potential Drawback of an Expansion

question 157

Multiple Choice

Which of the following is a potential drawback of an expansion of government spending projects during a recession?

• A)Spending projects are easily reversed once the economy has recovered.
• B)Government spending projects are not included in the calculation of GDP.
• C)Those benefiting from spending projects will lobby for a continuation of these projects long after the economy has recovered.
• D)Government spending projects will not encourage rent-seeking activity.

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Definitions:

Purchasing Costs

The costs associated directly with buying goods or services, including price of the product, taxes, shipping, and handling fees.

Raw Materials

The basic materials from which products are made, typically extracted from natural resources or semi-processed before manufacturing begins.

Finished Goods

These are products that have completed the manufacturing process and are ready for sale to consumers or retailers.

Closed-Loop

A system where the resources are reused, recycled, or adequately disposed of to minimize waste and environmental impact.