Sizeable budget deficits can be expected in the years ahead because

a. the retirement of the baby boom generation will soon begin to push expenditures on both Social Security and Medicare upward.
b. the political incentive structure encourages politicians to spend more revenue than they are willing to tax.
c. both a and b are true.
d. both a and b are false. Budget surpluses can be expected in the years ahead.

C

Economics

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Why are elected representatives far more likely to be informed about the issues on which they vote, compared to the typical citizen-voter?

A) A politician loves politics; citizens hate it. B) A politician is more patriotic than citizens. C) A politician is rationally ignorant; citizens are just plain ignorant. D) A politician's vote has a far greater probability of affecting the outcome, compared to a citizen's vote.

Economics

If MUx/Px is less than MUy/Py, then the consumer should consume more of X and less of Y

a. True b. False

Economics