Decreasing Government Expenditures in Order to Reduce the Government's Budget

question 47

Multiple Choice

Decreasing government expenditures in order to reduce the government's budget deficit can involve certain costs. An example of such a cost could be

• A)improving the flexibility to practice counter- cyclical fiscal policy.
• B)encouraging future generations to be more self- sufficient and less reliant on government to provide for them.
• C)a lower portion of taxes being used to pay interest.
• D)longer queues for essential government services such as health- care services.
• E)adequate school facilities to accommodate a growing population.

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Definitions:

Authority

Authority refers to the legal power or right given to an individual or body to make decisions, enforce rules, or control something or someone.

Employer's Organization

A group that represents the interests of employers in various industries.

Ratify

To officially approve or confirm, often used in the context of validating agreements or contracts.

Actual Authority

The power that an agent or representative has been formally given by a principal to conduct specific acts.