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:

Inventory Service Costs

Expenses associated with storing, handling, and managing inventory, including warehousing and insurance costs.

Independent Demand Items

Products or services for which demand is influenced by market conditions and customer preferences, not related to the production plans for other items.

Production Schedule

A detailed plan outlining the timing and sequence of production activities necessary to complete a manufacturing process.

MRP II

Stands for Manufacturing Resource Planning, an integrated method of operational and financial planning for manufacturing companies, improving overall production efficiency.