Asked by Danielle Toone on May 06, 2024
Verified
Which statement is the most accurate?
A) Most public goods and services could be provided more profitably by private companies.
B) Nearly all of the money that the federal government redistributes goes from the rich and the middle class to the poor.
C) One of the ways the federal government stabilizes our economy is by placing a floor under our economy's purchasing power.
D) The total federal budget today is less than 5 percent of GDP.
Public Goods
Goods or services produced by the government; they can be jointly consumed by many individuals simultaneously at no additional cost and with no reduction in quality or quantity.
Purchasing Power
A currency's value determined by the volume of goods or services that can be bought with one monetary unit.
Federal Budget
The annual financial statement presenting the government's proposed revenues and spending for a fiscal year.
- Analyze how government spending and taxation interact to influence the economy.
Verified Answer
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Hashtag DeliveredMay 12, 2024
Final Answer :
C
Explanation :
The statement that the federal government stabilizes the economy by placing a floor under our purchasing power is accurate. This is done through programs like social security, unemployment benefits, and minimum wage laws.
Answer: D
The statement that the total federal budget today is less than 5 percent of GDP is not accurate. As of 2021, the federal budget is approximately 21% of GDP.
Therefore, the most accurate statement is C.
Answer: D
The statement that the total federal budget today is less than 5 percent of GDP is not accurate. As of 2021, the federal budget is approximately 21% of GDP.
Therefore, the most accurate statement is C.
Learning Objectives
- Analyze how government spending and taxation interact to influence the economy.