What are entitlements? How has the increase in the number of entitlements changed the budgetary process?
What will be an ideal response?
Entitlements are government programs that provide funds to those who meet eligibility requirements rather than appropriating a fixed amount of money for a program. The increased used of entitlements has changed the budgetary process because it is difficult to hold entitlements to an incremental increase each year since it is difficult to predict how many individuals will be eligible for an entitlement in a given year and how much each individual will cost the government. As a matter of routine, entitlement expenditures have exceeded estimates. Increased spending on entitlements has added to the uncertainty of the budgetary process and placed considerable pressure on non-entitlements.
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The above figure shows the U.S. market for 1 carat diamonds. Suppose the United States imposes the import quota shown in the figure. With the import quota, how many diamonds can be imported?
A) 500,000 B) 700,000 C) 400,000 D) 900,000 E) 300,000
Wants
A) is another term for needs. B) refer to services while needs refer to goods. C) is the term used by economists instead of needs because needs are not objectively definable. D) are used by economists and refer to the same thing as needs when used by psychologists.