What is the difference between a program budget and a line-item budget? Is one more valuable to evaluating the effectiveness of government expenditures? Why?
What will be an ideal response?
The difference between a program budget and a line-item budget is a program budget groups expenditures by program goals while a line-item budget groups expenditures by the types of items that are purchased. At a college, for example, a program budget could list all the expenditures of the economics department and a line-item budget could list all college spelling on printing paper. Program budgets provide more valuable information about the effectiveness of government programs because the costs of a program can be directly compared with the benefits, something that cannot be done with line-item budgets.
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Initially the nominal exchange rate between the South Korean won and the U.S. dollar is 950 won per dollar. If the nominal exchange rate increases to 1000 won per dollar and the U.S and Korean price levels do not change, the real exchange rate
A) is the same as before. B) is greater than before. C) is less than before. D) More information is needed to answer the question.
What are the three cases for the price elasticity of demand? Briefly define each
What will be an ideal response?
Refer to Table 20-4. Assume the market basket for the consumer price index has two products—meat and potatoes—with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A) 125. B) 129. C) 135. D) 141.
It may be demonstrated that any protectionist policy, which effectively shifts real resources to import competing industries or sectors will harm export industries or sectors. This may, for example, happen by the strengthening U.S
dollar in the foreign exchange market. Would you propose therefore that export industries lobby against protectionism in International Trade Commission proceedings? What of consumer advocates? Discuss the pros and the problems of such a suggestion.