What is the difference between a program budget and a line-item budget? Is one more valuable to evaluating the effectiveness of government expenditures? Why?
What will be an ideal response?
The difference between a program budget and a line-item budget is a program budget groups expenditures by program goals while a line-item budget groups expenditures by the types of items that are purchased. At a college, for example, a program budget could list all the expenditures of the economics department and a line-item budget could list all college spelling on printing paper. Program budgets provide more valuable information about the effectiveness of government programs because the costs of a program can be directly compared with the benefits, something that cannot be done with line-item budgets.
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Which curve is analogous to the monopsonist's demand curve?
A) ME B) AE C) MV D) MC
Consider a market consisting of seven firms with market shares of 40, 20, 10, 10, 8, 7, and 5 percent, respectively. Which of the following statements is true?
a. The four-firm concentration ratio would be 0.03. b. The Herfindahl index would be 1,000. c. The Herfindahl index would be 2,228. d. The Herfindahl index would be 1,500. e. The Herfindahl index would be 2,338.