Crowding-Out Is the Notion That

question 167

Multiple Choice

Crowding-out is the notion that:

• A)since tax revenues vary directly with GDP, a rise in the level of GDP will increase the budget surplus and limit expansion.
• B)deficit financing will increase the demand for money, increase the interest rate, and reduce the level of investment spending in the economy.
• C)the full-employment budget is the best indicator of whether a budget deficit crowds out investment.
• D)the actual budget is the best indicator of whether a budget deficit crowds out saving.

Grasp the method of calculating estimated total factory overhead cost for a product using ABC.

Identify the inadequacies of using a single plantwide factory overhead rate in diverse production environments.

Understand the impact of accurate product costing on managerial decisions such as product pricing and mix.

Apply activity-based costing in service organizations for allocating selling and administrative costs.

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Definitions:

Expected Profits

Projected earnings calculated by estimating revenues and subtracting anticipated costs and expenses.

Interest Rates

The cost of borrowing money or the return on savings, typically expressed as a percentage.

Lottery

A lottery is a form of gambling that involves drawing numbers at random for a prize, often administered by state or federal governments.

Winnings

The amount of money or prizes won in a game or competition.