The Fastest Growing Component of the Annual Federal Budgets Since

question 96

Multiple Choice

The fastest growing component of the annual federal budgets since 2000 is

• A) the education budget.
• B) entitlement payments.
• C) funding for health research.
• D) interest payments on government debt.

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is unattainable.

Units Bought

Refers to the quantity of a particular good or service purchased by consumers or businesses.

Tax Imposed

A financial charge or other levy placed upon an individual or a legal entity by a state or a functional equivalent of a state.

Consumer Surplus

The difference between the amount consumers are willing to pay for a good or service versus what they actually pay.