Health care makes up ________ of the U.S. economy

Which of the following carries out the distribution process by rationing goods on the basis of preferences and relative incomes?

a. Administered system b. Government c. Price system d. Central planning

Governments can impede economic growth for many reasons. Which of the following is not a major reason?

a. High taxes can reduce consumption & investment, and they can reduce the incentive to work. b. Government projects may have relatively low marginal returns. c. Governments may spend more than they earn in tax revenues. d. The lack of government accountability to a bottom line could allow for wasteful spending e. Regulation may damage production incentives.