Crowding Out Refers to a Decline in ________ as a Result

question 292

Multiple Choice

Crowding out refers to a decline in ________ as a result of an increase in ________.

• A)tax revenues; unemployment
• B)government purchases; tax rates
• C)government purchases; private expenditures
• D)private expenditures; government purchases

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Definitions:

Jobs

Individual units or batches of work that can be distinguished from each other in a manufacturing or service delivery process.

Supplies Cost

The cost associated with materials and items used in the operation of a business but not directly tied to the products being manufactured or services provided.

Spending Variance

The difference between the actual amount of money spent and the budgeted or planned amount of expenditure.

Cost Formula

An equation used to predict the total cost of production, combining both fixed and variable costs, based on the level of activity or volume.