The Term Differential Cost Refers To

question 56

Multiple Choice

The term differential cost refers to:

• A)a difference in cost which results from selecting one alternative instead of another.
• B)the benefit forgone by selecting one alternative instead of another.
• C)a cost which does not involve any dollar outlay but which is relevant to the decision-making process.
• D)a cost which continues to be incurred even though there is no activity.

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Definitions:

Keynesians

Keynesians are economists or followers of the economic theories of John Maynard Keynes, who advocate for active government intervention to manage economic cycles.

Crowding-Out

An economic theory that suggests increased government spending reduces or "crowds out" private sector spending and investment.

Fiscal Policies

Government policies related to taxation and spending that are used to influence the economy, manage inflation, and stimulate or slow down economic growth.

Bond Sales

The process of issuing debt securities by entities such as corporations or governments to investors to raise capital.