Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.According to this Application, which of the following is NOT a strategy that the government can pursue to address the rising cost of federal retirement and health care programs?
A. reform the health care system to encourage more competition to reduce health care expenditures
B. increase the age at which retirement benefits begin to be paid
C. borrow from the public to finance the programs
D. promote government saving and investment to increase real GDP over time
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
An advantage of proprietorships is
A) the ease with which they can be formed and dissolved. B) their ability to raise large amounts of equity capital. C) the fact that their profits are not taxed. D) the breadth of management expertise that comes from having a board of directors.
A corrective tax equal to the external cost imposed on third parties levied on polluters will: a. eliminate all pollution
b. increase the level of pollution. c. force polluters to internalize the external cost resulting from their actions. d. usually have no impact whatsoever on pollution levels, but will generate tax revenue for the government.
One way the government decides how to pay for a public good is:
A. the transfer of surplus. B. the ease of collecting payout. C. if they can make the good excludable and charge its users. D. All of these are ways the government allocates payment of public goods.