Sizeable budget deficits can be expected in the years ahead because
a. the retirement of the baby boom generation will soon begin to push expenditures on both Social Security and Medicare upward.
b. the political incentive structure encourages politicians to spend more revenue than they are willing to tax.
c. both a and b are true.
d. both a and b are false. Budget surpluses can be expected in the years ahead.
C
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Compare and contrast the outcomes with respect to price and output in a monopolistically competitive market and a perfectly competitive market. In which situation are consumers better off? Why?
What will be an ideal response?
Which of the following trends has been observed in federal revenues and expenditures over time?
a. Expenditures were lower than the revenues in the 1998-2001 period. b. Expenditures were lower than the revenues in the 1930s. c. Expenditures were higher than the revenues in the 1998-2001 period. d. Expenditures were more or less equal to the revenues in the 1930s. e. Expenditures were more or less equal to the revenues in the 1998-2001 period.
In assessing Superfund, we observe
a. a market-based approach to waste site clean-up b. the use of benefit-cost analysis to determine abatement levels c. inefficiency due to uniform site cleanup d. weak legal standards to identify PRPs