Which of the Following Is a Reason Why We Should

question 93

Multiple Choice

Which of the following is a reason why we should consider the federal national debt a problem?

• A)The federal government is in danger of defaulting on its debt.
• B)If the debt drives up interest rates,crowding out will occur.
• C)If the debt was incurred to finance improvements in infrastructure,crowding out will occur.
• D)If the debt was incurred to finance research and development,crowding out will occur.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and sales commissions.

Gross Margin

Gross margin is a company's net sales revenue minus its cost of goods sold, representing the efficiency with which it can produce and sell its products for a profit.

Scattergraph Method

A graphical technique used to identify the relationship between two variables, often used in cost analysis to distinguish between fixed and variable costs.

Cost Estimates

Approximations of the cost to complete a project, manufacture a product, or provide a service, based on available information.