Price Systems
Price systems allowance
What is allows all resources to move from lower-valued uses to higher-valued uses via voluntary exchange
Size of the public sector
What is the number of public employees
Courts and police appear to be
What is economic functions of government
government actions
What is the result of decision making by individuals in their roles as elected representatives, appointed officials, and salaried bureaucrats
Health-related spending
What is significant portion of total government expenditures and medical expenses are a major concern for many elderly people.
Situations are market failures
What is Market failures prevent the price system from attaining economic efficiency and individual freedom.
total government outlays
What is transfer payments, such as welfare and Social Security.
All relationships among consumers and businesses
What is governed by the legal rules
Collective decision making
What is involves the actions of voters, politicians, political parties, interest groups, and many other groups and individuals.
second-biggest domestic government spending program in existence
What is Medicare
An externality
What is an external cost
federal and state governments allocation of spending
What is Medicare and other health-related spending, Social Security and other income-security programs, and national defense
What the government serves as in the judicial system
What is referee for settling disputes in the economic arena and often imposes penalties for violations of legal rules.
Proportional rule
What is a decision-making system in which actions are based on the proportion of the “votes” cast and are in proportion to them
founding of Medicare
What is huge upsurge in physicians’ incomes and medical school applications, the spread of private for-profit hospitals, and the rapid proliferation of new medical tests and procedures
Spilling over affects third parties
What is parties other than the buyer and the seller of the steel.
More Government outlays
What is government expenditures on employees, rent, electricity
state governments pass antitrust legislation
What is Laws that restrict the formation of monopolies and regulate certain anticompetitive business practices.
Theory of public choice
What is it has been given this name because it involves hypotheses about how choices are made in the public sector, as opposed to the private sector.
Medicare subsidies growth
What is Medicare spending is growing much faster than total employer and employee contributions
two avenues are open to the government
What is special taxes and legislative regulation or prohibition.
Government outlays during World war I and II
What is there was a spike during World War I, a general increase during the Great Depression, and then a huge spike during World War II.
Types of goods used
What is Goods that can be consumed by only one individual at a time. Private goods are subject to the principle of rival consumption. Public goods are when the principle of rival consumption does not apply.
Majority rule
What is a collective decision-making system in which group decisions are made on the basis of more than 50 percent of the vote.
Cost of Medicare
What is the current cost of the program is more than $400 billion per year.