In 2011, which category represented the largest category of spending for the U.S. federal government?

If the amount paid as unemployment benefits decreases, the opportunity cost of job search

A) falls and people stay unemployed for a shorter time. B) rises and people would stay unemployed longer. C) rises and people stay unemployed for a shorter time. D) falls and people stay unemployed for a longer time. E) is not affected because unemployment benefits do not change job availability.

Government can correct for negative externalities by

A) decreasing taxes. B) increasing taxes or regulation. C) allowing the market system to correct the problem. D) decreasing the costs to those responsible for the externality.