During the Last Three Decades, the Real (Adjusted for Inflation)

question 218

Multiple Choice

During the last three decades, the real (adjusted for inflation) expenditures

• A) on Medicare have grown rapidly, but the real expenditures on Medicaid have been virtually constant.
• B) on the Medicare program have been virtually constant but the real expenditures on Medicaid have increased substantially.
• C) on both Medicare and Medicaid have increased substantially.
• D) on both Medicare and Medicaid have been virtually constant.

---

Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.

Direct Materials

The essential components or raw inputs used directly in the manufacture of goods, critical to the production process.

Work in Process

Inventory representing partially completed goods, which include direct labor, material, and overhead costs incurred up to the point of measurement.

Finished Goods

Finished goods are merchandise or products that have completed the manufacturing process and are ready to be sold to customers.