Brian Is Running for State Senator and If Elected,pledges to Improve

question 41

Multiple Choice

Brian is running for state senator and if elected,pledges to improve economic growth.His plan for economic growth includes increasing spending on public education and providing tax incentives to encourage improved private education.His plan is likely to

• A)slow economic growth because it includes a provision for private education.
• B)have no effect on economic growth because property rights are not changed.
• C)speed economic growth as the quality of resources improve.
• D)fail because the provision for private education limits government involvement in education.
• E)have no effect on economic growth because government spending cannot affect the economic growth rate.

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Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid.

Unit Fixed Costs

Unit fixed costs refer to the costs that do not vary with the level of output or activity within a certain range of production or sales.

Total Variable Cost

The sum of all costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Discretionary Fixed Cost

Fixed costs that are not directly related to production and can be changed or eliminated at management's discretion.