The Deficit Principle States That

question 39

Multiple Choice

The deficit principle states that:

• A) a need is activated only when the next-lower-level need is satisfied.
• B) people dislike work, lack ambition, act irresponsibly, and prefer to be led.
• C) people are willing to work, like responsibility, and are self-directed and creative.
• D) people at work rationally consider opportunities made available to them and do whatever is necessary to achieve the greatest personal and monetary gain.
• E) a satisfied need is not a motivator of behavior.

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Definitions:

Election Year

A year in which a formal decision-making process is conducted through which citizens vote to choose public officials or to decide on public policy issues.

Government Purchases

Government purchases comprise spending by government bodies on goods and services that contribute directly to the economy's aggregate demand.

Stagflation

A period of slow economic growth and high unemployment while prices continue to rise.

Fiscal Policy

Government adjustments to its spending levels and tax rates to influence a nation's economy, aiming to manage economic output, inflation, and employment.