Maintaining Social Expenditures in Many Advanced Democracies Will Require

question 21

Multiple Choice

Maintaining social expenditures in many advanced democracies will require:

• A)more immigrants.
• B)fewer immigrants.
• C)higher tariff barriers.
• D)lower tariff barriers.
• E)lower taxes.

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Definitions:

Production Efficiency

A level of production in which the economy can no longer produce additional amounts of a good without lowering the production level of another product.

Production Inefficiency

A situation where a firm or economy is not producing at the lowest possible cost or maximally utilizing its resources, leading to waste or lost potential output.

Opportunity Cost

Sacrificing potential opportunities from a range of alternatives by settling on one.

Present Consumption

The portion of current income or resources that is used for consumption, rather than saving or investing.