Which of the Following Statements Best Characterizes the Government's Spending

question 80

Multiple Choice

Which of the following statements best characterizes the government's spending on federal contracts in recent years?

• A)The amount of spending on federal contracts has remained the same since 2000.
• B)The amount of spending on federal contracts has decreased steadily since 2000.
• C)The amount of spending on federal contracts has increased significantly overall since 2000, but for the first time in 13 years, spending on outside contractors declined in 2011.
• D)The amount spent on federal contracts declined between 2000 and 2005 but has dramatically increased since 2005.

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Definitions:

Social Security System

A government program that provides financial assistance to people with inadequate or no income, especially the elderly and disabled.

Highest-Valued Alternative

The best next option forgone as a result of making a particular decision, often related to the concept of opportunity cost.

Production Possibilities Curve

A curve that outlines all possible combinations of total output that could be produced, assuming (1) a fixed amount of productive resources, (2) a given amount of technical knowledge, and (3) full and efficient use of those resources. The slope of the curve indicates the amount of one product that must be given up to produce more of the other.

Economic Organization

The structured systems and institutions through which economic activity is conducted and regulated, including markets, firms, and government agencies.