Proponents of a balanced budget amendment to the Constitution argue that it will finally exert discipline on the federal government and so prevent large peacetime deficits. What do the critics argue?
What will be an ideal response?
Critics of a balanced budget amendment point to several problems; first, it may make it harder to stabilize the economy; second, the Constitution may not be the correct vehicle for dealing with the problem; third, Congress could devise special ways to get around the restrictions; and finally, Congress can also find nonbudgetary ways to get around the restrictions.
Economics
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What are three major ways that corporations can cope with the principal-agent problem?
What will be an ideal response?
Economics
If the hot dog vendors at Yankee Stadium are earning a producer surplus on each hot dog they sell, then baseball fans cannot be gaining any consumer surplus on the hot dogs they buy
Indicate whether the statement is true or false
Economics