Problems with the Federal Government Budget Process Include

question 143

Multiple Choice

Problems with the federal government budget process include:

• A)tough choices to be made by Congress each year on which entitlement programs will receive full support.
• B)the constitutional requirement of Congress to balance the budget on an annual basis.
• C)an overly detailed budget that allows Congress to reward friends,thereby discouraging restraint on spending.
• D)a short review period for Congress that results in poor choices in funding programs.
• E)Congress having too much control over the budgetary process.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting its sensitivity.

Tax Revenue

The income that is gained by governments through taxation.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in its price.

Price Inelastic

Refers to a situation where the quantity demanded or supplied of a good or service changes by a smaller percentage than changes in price.