Crowding Out Refers to A(n)

question 38

Multiple Choice

Crowding out refers to a(n)

• A) increase in the consumption of domestic goods and services at the expense of imports.
• B) increase in the consumption of imports at the expense of domestic goods and services.
• C) decrease in exports because of higher government spending.
• D) decrease in consumption or investment spending caused by increased government spending.
• E) decrease in government spending caused by higher private-sector spending.

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Definitions:

Direct Labor-Hours

The total number of hours worked by employees directly involved in the manufacturing process.

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of a finished good.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific products or activities based on their consumption of resources.

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods.