Which of the following statements is true of Medicare?
A) Medicare pays for health-care services for low-income persons, irrespective of age.
B) Medicare is now the government's second-largest domestic spending program, after Social Security.
C) The Medicare program pays for nursing home expenses.
D) The costs of Medicare are expected to decline over the next two decades with the retirement of baby boomers.
E) Medicare is an example of federal discretionary spending.
Question -2-According to the principle underlying fiscal policy, during inflation, fiscal policy should:
A) stimulate economic activity by decreasing taxes.
B) curb economic activity by reducing government spending.
C) let the forces of supply and demand operate on their own.
D) expand the rate of growth of the money supply.
E) use the easy-money policy.
Question -3-Which of the following statements is true of energy sources in the United States?
A) U.S. oil production, which rose sharply after 1985, began to decline again in 2009.
B) Low natural gas prices plus new air-pollution regulations have made coal uncompetitive as a source of electricity.
C) The United States is not in favor of using nuclear energy as it releases greenhouse gases.
D) The Obama administration approved the construction of the Keystone XL pipeline along the U.S. Gulf Coast.
E) Imports of natural gas are cost-effective as natural gas can be transported by ship efficiently.
Question -4-Chad, a sales executive at Ochre Inc, was laid off after Ochre faced severe financial losses in the second and third quarters of 2014. The country witnessed an economic decline in the same year. As a result, Chad is now struggling to make ends meet with his limited savings. His debt has considerably increased, and he is finding it difficult to pay his household bills. This situation is an example of _____.
A) inflation
B) an appreciation period
C) a recession
D) disintermediation
E) a boom period
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