How do limited and bundled choice contribute to government inefficiency?
Please provide the best answer for the statement.
In the private sectors, consumers typically purchase just the amount and type of good they want because the purchase of one good is separate from the decision to purchase another good. By contrast, in the public sector, public goods are bundled together through legislative bills or other political actions, so elected representatives do not have the option to select only the individual public good they want to support and make a discrete choice on each public good expenditure included in legislation. The only option that the elected representatives have is to support the bundle, some of which they may like and others of which they may oppose. This means that when legislation is passed, some of it may be good and useful, but some of it may not be, but it is still supported because it is part of the bundle.
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Aggregate expenditures include all of the following EXCEPT
A) consumption of food. B) purchases of intermediate goods. C) purchases of a piece of capital equipment. D) purchases of guns by the government.
In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the CPI in 2012?
A) 320 B) 1.00 C) 3.20 D) 100