For the federal government, what is the difference between discretionary spending and mandatory spending? What categories of spending account for the largest amount of the federal government's discretionary spending and mandatory spending?
What will be an ideal response?
Discretionary spending must be authorized by Congress each year, while mandatory spending does not need the authorization of Congress. National defense accounts for the largest portion of discretionary spending, and entitlement programs account for almost all mandatory spending, with Social Security alone making up about 31% of mandatory spending.
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Answer the following statement(s) true (T) or false (F)
1. An implication of Paul Portney’s benefit-cost analysis of the 1990 Clean Air Act Amendments is that the United States is under-regulating air pollution. 2. Based on the EPA’s first and second prospective studies of the 1990 Clean Air Act Amendments, the associated net benefits of this legislation are greater than zero. 3. The NAAQS are established using benefit-cost analysis. 4. Because the NAAQS are nationally-based and uniform, they necessarily achieve an efficient result at the regional level. 5. The more stringent standards in PSD areas do not necessarily result in an efficient level of abatement in those regions.
A fall in the price of X from $12 to $8 causes an increase in the quantity of Y demanded from 900 to 1,100 units. What is the cross elasticity of demand between X and Y?
A) 0.5 B) -0.5 C) 2 D) -2
If foreign interest rates rise
A) the demand for domestic currency rises, causing it to appreciate. B) the demand for domestic currency falls, causing it to depreciate. C) the demand for domestic currency rises, causing it to depreciate. D) the demand for domestic currency falls, causing it to appreciate.
To evaluate the potential impact of introducing the hybrid Prius auto into the U.S. market, Toyota Motor Corporation would use:
A) positive economic analysis. B) normative economic analysis. C) negative economic analysis. D) forensic analysis.