Which of the Following Was True About the U

question 69

Multiple Choice

Which of the following was true about the U.S. defense budget before big cuts were announced in early 2012?

• A) Although smaller than the budgets of Russia and China, it exceeded the budgets of all other NATO countries, Japan, Saudi Arabia, and India combined.
• B) It exceeded the budgets of all other countries except China, which had greatly increased its budget in order to modernize its military forces.
• C) It exceeded the budgets of all other NATO countries, Russia, China, Japan, Saudi Arabia, and India combined.
• D) Although it exceeded the budgets of all other NATO countries, Japan, and Saudi Arabia combined, the budgets of Russia, China, and India were greater.
• E) It exceeded the budgets of all other NATO countries, China, Japan, Saudi Arabia, and India combined, but was still less than the budget in Russia, where military power has continually increased since the breakup of the Soviet Union.

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Definitions:

Marginal Revenue

represents the extra revenue that an undertaking receives from selling one additional unit of a product or service.

Monopolistically Competitive

Describes a market structure where many companies sell products that are similar but not identical.

Profit-Maximizing

A strategy or approach focused on adjusting production and operational variables to achieve the highest possible profit margins.

Output Quantity

The total amount of goods or services produced by a company or country within a specific period.