Most Analysts Expect the Largest Federal Spending Category to Continue

question 369

Multiple Choice

Most analysts expect the largest federal spending category to continue to grow in importance for many years into the future.What category of spending is this?

• A) national defense
• B) Social Security
• C) income security
• D) farm support programs

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability.

Progressivity

A characteristic of a tax system in which the tax rate increases as the taxable amount increases, placing a larger burden on high-income earners.

Federal Payroll Tax

Taxes imposed by the federal government on the wages of employees, which fund social security and Medicare programs.

Equilibrium Price

The value at which there is a perfect match between how much of a good or service is wanted and how much is provided, leading to a state of market equilibrium.