When government outlays exceed tax revenues, the situation is called a budget
A) surplus.
B) deficit.
C) with a negative balance.
D) with no balance.
E) debt.
B
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It is possible to come up with a democratic social choice process that satisfies Arrow's axioms as long as we are willing to let go of the No Dictatorship axiom.
Answer the following statement true (T) or false (F)
The government giving the ownership of a pond to a citizen to reduce over fishing is a method to prevent _____
a. the free rider problem b. the tragedy of the commons c. asymmetric information d. deadweight loss
The branch of economics that attempts to understand the outcomes observed in the public sector by examining the incentives faced by the individual actors involved (such as voters, politicians, and bureaucrats) is known as
a. private choice analysis. b. public choice analysis. c. government operations analysis. d. incentive analysis.
Refer to Figure 3.1. If one of the graphs represents the total benefit of an activity, which other graph best represents the marginal benefit of the activity?
B. B
C. C
D. D