Suppose there was a debate regarding how to spend $1 billion in newly found revenues in the budget. Suppose the centrist Democrat suggests an increase to infrastructure spending. Suppose the centrist Republican suggests an increase in cyber-defense spending. Each is arguing that their plan will get the most good for the money. What is going on here?
A. Both are employing marginal analysis, just from different perspectives.
B. Only the Republican is using marginal analysis.
C. Only the Democrat is using marginal analysis.
D. Neither are using marginal analysis.
Answer: A
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In the loanable funds market, the supply comes from
A) saving, the government budget surplus and international borrowing. B) only saving and the government budget surplus. C) only saving. D) only the government budget surplus and international borrowing.
if import restrictions prohibit foreigners from selling various goods and services in the U.S Market
What will be an ideal response?
Exhibit 6-1 Production of pizza data Workers Pizzas 0 0 1 4 2 10 3 15 4 18 5 19 Exhibit 6-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the second employee equals:
A. 4. B. 10. C. 14. D. 6.
The Smoot-Hawley Tariff
A) lowered U.S. tariffs by 50 percent following World War II. B) was passed by the U.S. Congress following the Civil War as a means of increasing government revenue. C) was passed by the U.S. Congress upon a recommendation made by the General Agreement on Tariffs and Trade (GATT) in 1948. D) raised average tariff rates by over 50 percent in the United States in 1930.