If Economic Activity Slows Down,total Costs Could Easily Decline in Which

question 49

Multiple Choice

If economic activity slows down,total costs could easily decline in which of the following categories?

• A)variable costs and committed fixed costs
• B)variable costs and discretionary fixed costs
• C)variable costs only
• D)committed fixed costs only

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Definitions:

Highly Progressive

A tax system in which tax rates increase significantly as income or wealth rises.

Federal Spending

Expenditures by the federal government, which can include spending on defense, social security, health care, and infrastructure, among others.

National Defense

Government actions, including militaristic measures, taken to defend a country from external threats and ensure national security.