Social Security spending and Medicare spending are all financed with revenues held in
22. Everyone agrees that the government needs to provide us with more merit goods.
23. Government spending has no effect on resource allocation since the government simply
engineers a transfer of private goods and services from one group in the economy to
some other group.
24. Street lights are an example of a public good provided at the local level.
25. Private goods are nonexclusive goods.
26. A merit good is just another name for a public good.
27. State and local governments spend more on the purchases of goods and services than the
28. Transfer programs are a way to redistribute incomes to address economic inequities.
29. Programs to control government spending automatically kick in when government
spending exceeds 15% of gross domestic product.
30. When the Social Security Act was passed by Congress it was initially intended only to
provide full-retirement income for citizens.
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