Of the Following, the Largest Single Component of U

question 140

Multiple Choice

Of the following, the largest single component of U.S.federal government expenditures is spent on

• A) interest paid on the national debt.
• B) Social Security benefits.
• C) national defense.
• D) purchases of goods and services for purposes other than national defense.
• E) transfers to state and local governments.

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Definitions:

Fixed Cost

Costs that do not change with the level of production or output, such as rent, salaries, and loan payments.

Patent

A legal right granted to an inventor that provides exclusive commercial rights to an invention or process for a certain period.

Inverse Demand Function

A mathematical formula that expresses the price of a good or service as a function of the quantity demanded, demonstrating how price is influenced by changes in demand.

Unit Tax

A fixed tax amount applied to each unit of a good or service sold, affecting its selling price and demand.