Problems with the Federal Government Budget Process Include

question 146

Multiple Choice

Problems with the federal government budget process include:

• A)budgeting that allows the President too much discretion in spending decisions.
• B)budgeting that increases the flexibility of discretionary fiscal policy.
• C)a budget outline that needs to be approved with at least a two-thirds majority vote.
• D)most of the expenditures being for entitlement programs.
• E)a brief budgeting that does not allow Congress to study whether the budget is an appropriate tool for fiscal policy.

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Definitions:

Utility Function

A utility function is a mathematical representation of a consumer’s preferences, ranking different bundles of goods according to levels of satisfaction.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning they would derive the same level of satisfaction from any combination.

Bliss Point

The optimal quantity of consumption where any further increase or decrease would lead to a lower level of satisfaction for the consumer.

Indifference Curves

Graphical representations in microeconomics to illustrate different combinations of goods between which a consumer is indifferent.