How are government budgets affected by rising health care costs?
What will be an ideal response?
The budgets of government at all levels—Federal, state, and local—are also worsened by spiraling health care expenditures. Medicare and Medicaid has been the fastest growing segment of the Federal budget. Higher taxes or reductions in other budget components (national defense, education, environmental programs) must cover the increases in health care costs. States are finding it difficult to cover their share of Medicaid costs. This situation requires them to reduce other expenditures on infrastructure, education, and welfare. Local governments face similar strains, especially to finance hospitals and public health services.
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In 2015, Hooverville consumed 205,000 tons of sugar. In 2016, sugar consumption rose to 245,000 tons. Calculate the percentage change in sugar consumption
A) 8.37% B) 11.95% C) 19.51% D) 26.33%
The slope of the production possibility frontier shows
a. the marginal rate of substitution between the two goods. b. the relative marginal costs of the two goods. c. the efficient combination of outputs possible using fixed amounts of input. d. the relative marginal productivities of the two goods.
If both Canadian exporters and importers are content with the Canadian exchange rate, what would keep them content tomorrow?
a. a stronger Canadian dollar b. a weaker Canadian dollar c. appreciation of the Canadian exchange rate d. depreciation of the Canadian exchange rate e. no change in the Canadian exchange rate
The investment demand curve as a function of various possible interest rates for the entire economy is assumed to be:
A. positively sloped. B. negatively sloped. C. rising, then falling. D. falling, then rising.