Needs-Tested Spending

question 9

Multiple Choice

Needs-tested spending

• A)increases as real GDP increases.
• B)increases as unemployment increases.
• C)decreases as unemployment increases.
• D)decreases in recession.
• E)makes recessions more severe.

---

Definitions:

Marginal Benefit

The enhanced benefit or happiness one achieves by using an extra unit of any good or service.

Purely Competitive

A market structure characterized by many small firms producing identical products, free entry and exit, and no single firm influencing the market price.

Supply Curve

The supply curve is a graphical representation showing how the quantity of a good that a supplier is willing and able to sell varies depending on the price.