Which of the following is not an important reason for the projected increase in government spending as a percentage of GDP over the next several decades?
A) The increase in life expectancy resulting from advances in healthcare
B) A reduction in the average number of children per family.
C) The increase in the number of jobs lost each year to foreign countries as a result of outsourcing
D) The increase in the cost of healthcare

Question

Quizplus · Accepted Answer

The increase in government spending as a percentage of GDP is mainly driven by factors such as the increasing cost of healthcare (D) and the growing number of elderly people due to advances in healthcare (A). The reduction in the average number of children per family (B) can also contribute to an increase in government spending as there will be a smaller number of younger people entering the workforce and paying taxes to support government programs. However, the loss of jobs to foreign countries as a result of outsourcing (C) is not directly related to government spending as a percentage of GDP.

Which of the Following Is Not an Important Reason for the Projected