Which is the fastest growing component of the federal government budget?

Which is the fastest growing component of the federal government budget?
 
  A) spending on the military and the war on terrorism
  B) spending to improve the nation's schools
  C) spending to improve and expand the nation's infrastructure
  D) spending on entitlements

---

Ques. 2

There has been some concern in the United States that people are not saving enough. This is a concern because
 
  A) decreases in saving lead to decreases in labor productivity.
  B) decreases in saving lead to decreases in investment.
  C) decreases in saving lead to increases in the capital stock.
  D) decreases in saving lead to increases in consumption in the future.

---

Ques. 3

In the simple Keynesian portion of the upward sloping short-run aggregate supply curve
 
  A) equilibrium real GDP is demand-determined.
  B) equilibrium real GDP is supply-determined.
  C) equilibrium real GDP is neither determined by aggregate supply nor by aggregate demand.
  D) equilibrium real GDP is determined by both aggregate supply and aggregate demand.

---

Ques. 4

A cutback in the space program due to a slow economy causes an increase in unemployment among aeronautical engineers. This is an example of
 
  A) cyclical unemployment.
  B) frictional unemployment.
  C) seasonal unemployment.
  D) structural unemployment.

---

Ques. 5

Which of the following statements is TRUE about the difference between a public and private good?
 
  A) Both public and private goods are owned by individuals but public goods can be shared while private goods cannot be shared.
  B) The government produces private goods while corporations produce public goods.
  C) Consumption of a private good by one person reduces the amount available for others while the consumption of a public good does not reduce the amount available for others.
  D) Resources are used to produce private goods but are not used to produce public goods.

---

Ques. 6

If you initially pay 1,000 for a bond with an annual interest rate of 5 percent, but then the market interest rate falls to 4 percent
 
  A) the market price of the bond is still 1,000.
  B) the bond's annual interest payment remains equal to 50.
  C) the market price of the bond has increased.
  D) the market price of the bond has decreased.

---

Ques. 7

Why is efficiency desirable?
 
  A) It results in an equal distribution of income.
  B) It results in zero unemployment.
  C) It makes best use of the finite resources we have.
  D) It is the most politically popular solution.