What Does the Federal Government Do When It Is Unable

question 35

Multiple Choice

What does the federal government do when it is unable to cover its expenditures?

• A)sells bonds
• B)indexes taxes to the cost of living
• C)changes the tax code -Consider This: Changing the tax code could work if citizens were asked to increase payments.Instead,the government has determined an appropriate channel is to sell bonds,which is easy to do given the low risk of default.
• D)invests in pork projects

Recognize the role of non-price factors in rationing goods when price controls are in place.

Analyze the effects of minimum wage laws on the supply and demand for labor.

Understand the impact of natural disasters on market prices and their role in resource allocation.

Comprehend the significance of government intervention in markets through price controls and its effects on supply and demand equilibrium.

---

Definitions:

Central Developmental Task

A crucial challenge that must be met or mastered during a stage of development.

Initiative

The ability to assess and initiate things independently; often refers to taking charge, being proactive, or launching new projects.

Preschooler

A child who is in the age group that attends preschool, typically between the ages of 3 and 5 years old.

Regression

A defense mechanism in which the person adapts behavior that was comforting earlier in life to overcome the discomfort and insecurity of the present situation.