What Part of Federal Government Spending Has Grown the Most

question 13

Multiple Choice

What part of federal government spending has grown the most rapidly in recent years?

• A)national defense
• B)welfare
• C)interest on the national debt
• D)social security and Medicare
• E)all other forms of federal government spending

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Definitions:

Monopolistic Industry

An industry dominated by a single firm that has control over pricing and the market, facing little to no competition.

Blocked Entry

A condition in a market where barriers prevent new firms from entering, often leading to reduced competition and allowing existing firms to maintain higher prices and profits.

Price Elastic

Refers to the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Demand

The desire for a particular good or service combined with the willingness and ability to pay for it.