A Budget That Is Continually Updated by Periodically Adding a New

question 70

Multiple Choice

A budget that is continually updated by periodically adding a new incremental time period such as a quarter, and dropping the period just completed is a

• A) short-range budget.
• B) long-range budget.
• C) capital budget.
• D) rolling budget.

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Definitions:

Above-Equilibrium

A situation where the price of a good or service is set above the market's equilibrium price, resulting in excess supply or a surplus of the product.

Equilibrium Level

The state in which market supply and demand balance each other, resulting in stable prices and quantities.

Efficiency Wages

A higher wage paid by employers to increase worker productivity and loyalty, reducing turnover and shirking.

Substitution Effect

The change in quantity demanded of a good due to a change in its price, causing consumers to substitute it with other similar goods.