Like Spending on Social Security,the Share of Federal Government Spending

question 9

Multiple Choice

Like spending on Social Security,the share of federal government spending on Medicare has risen substantially over time.This is most likely a result of

• A)a rising population of poor in the economy.
• B)a rising population of the elderly in the economy.
• C)an immigration policy that promotes an influx of migrant farm workers.
• D)All of the above are important factors.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Current Cost

The present-day cost to replace an asset or to purchase an equivalent asset, reflecting current market prices.

Actual Cost

The actual amount of money spent to acquire an asset, including all costs necessary to get the asset ready for its intended use.