Between 1950 and 2010, Most of the Growth in Federal

question 21

Multiple Choice

Between 1950 and 2010, most of the growth in federal expenditures was a result of increases in

• A) Private sector purchases of goods and services.
• B) Direct expenditures.
• C) Income transfers.
• D) Public sector purchases of goods and services.

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Definitions:

Long-run Cost Function

Describes the relationship between output and the cost of production when all inputs, including capital, are variable.

Marginal Cost

The production cost for one more unit of a product.

Local River

A naturally flowing body of water that is part of a community's immediate environment.

Long-run Cost Curve

Represents the cost of production when all inputs, including capital, can be varied, showing the lowest possible cost of producing each level of output.