While some supporters of the balanced budget amendment argue that governments should balance their budgets just like households do, which of the following is a valid argument against a balanced government budget?
a. The government has macroeconomic responsibilities.
b. The government has microeconomic responsibilities.
c. The government is larger than a household.
d. Households depend on the government.
a. The government has macroeconomic responsibilities.
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Assume health insurance is provided universally by the government. This would
A) force every taxpayer to bear the costs of adverse selection. B) force every taxpayer to bear the costs of moral hazard. C) force the government to deal with adverse selection problems. D) force foreign governments to deal with moral hazard problems.
Refer to the table. For these data, the law of increasing opportunity costs is reflected in the fact that:
Answer the question on the basis of the data given in the following production possibilities
table:
A. the amount of consumer goods that must be sacrificed to get more capital goods
diminishes beyond a point.
B. larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods.
C. the production possibilities data would graph as a straight downsloping line.
D. the economy's resources are presumed to be scarce.