What are entitlements? How has the increase in the number of entitlements changed the budgetary process?
What will be an ideal response?
Entitlements are government programs that provide funds to those who meet eligibility requirements rather than appropriating a fixed amount of money for a program. The increased used of entitlements has changed the budgetary process because it is difficult to hold entitlements to an incremental increase each year since it is difficult to predict how many individuals will be eligible for an entitlement in a given year and how much each individual will cost the government. As a matter of routine, entitlement expenditures have exceeded estimates. Increased spending on entitlements has added to the uncertainty of the budgetary process and placed considerable pressure on non-entitlements.
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Legislators who must stand for re-election every two years will tend to support
A) policies beneficial to all the people eligible to vote. B) policies beneficial to all the people now living. C) policies beneficial to all present voters and future generations of voters. D) policies promising early benefits and deferred costs. E) policies representing the public interest.
A decrease in the wage rate is represented as an upward movement along the labor supply curve
a. True b. False Indicate whether the statement is true or false
The GDP tends to:
a) overstate economic welfare because it does not include certain nonmarket activities such as the productive work of housewives. b) understate economic welfare because it includes expenditures undertaken to offset or correct pollution. c) understate economic welfare because it does not take into account increases in leisure. d) overstate economic welfare because it does not reflect improvements in product quality.
The efforts of a nation to influence exchange rates is known as:
A. open market operations. B. foreign exchange market intervention. C. rate discrimination. D. establishing terms of trade.