Which of the Following Statements Is Correct

question 10

Multiple Choice

Which of the following statements is correct?

• A) As long as the government debt grows faster than the economy's income, government deficits can grow forever
• B) As long as the government debt grows more slowly than the economy's income, government deficits can grow forever
• C) As long as the government debt grows more slowly than the economy's income, government deficits cannot grow forever
• D) None of the above

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Definitions:

Manufactures

Companies or individuals involved in the conversion of raw materials into finished goods, through the use of labor and machinery.

Office Furniture

Fixed assets consisting of desks, chairs, tables, cabinets, and other furnishings used in an office environment.

Variable Utilities Cost

Expenses for utilities that change in proportion to the level of production or activity of a business.

High-low Method

The high-low method is a straightforward way to estimate the variable and fixed components of a cost by using the highest and lowest activity levels and the corresponding total costs.