The Unfunded Mandates Reform Act of 1995

question 69

Multiple Choice

The Unfunded Mandates Reform Act of 1995

• A) only applied to programs that cost over $1 million.
• B) ordered the Congressional Budget Office to investigate the cost of mandates for the federal government.
• C) ordered the Congressional Budget Office to calculate the costs of regulation to states.
• D) forced states to fund all government mandates.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production including both fixed and variable costs.

AVC

Average Variable Cost refers to the cost of producing each unit that varies with the volume of output.

AFC

Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.

Total Variable Cost

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