The Factors Most Responsible for Forecasts of the U

question 40

Multiple Choice

The factors most responsible for forecasts of the U.S. government debt spiraling out of control in the next half century are the projected:

• A) slowdowns in the rates of technological change and human capital growth.
• B) decrease in high-skilled domestic workers and the increase in immigration of low-skilled workers into the United States.
• C) aging of the U.S. population and rising health care costs.
• D) increase in international competition and the outsourcing of U.S. jobs.

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Definitions:

Price Discrimination

The practice of charging different people or groups of people different prices that are not cost justified.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price to each customer based on their willingness to pay, capturing all consumer surplus as profit.

Consumer Surplus

The discrepancy between what consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, serving as an indicator of producer welfare.