In Every Economic System, Choices Must Be Made Because Resources

question 215

Multiple Choice

In every economic system, choices must be made because resources are ________ and our wants are ________.

• A) unlimited; limited
• B) limited; unlimited
• C) unlimited; unlimited
• D) limited; limited

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Definitions:

Federal Budget Deficit

The financial situation where the federal government's expenditures surpass its revenues within a given fiscal year.

Automatic Stabilizers

Economic mechanisms, such as progressive taxation and welfare spending, that automatically adjust to mitigate economic fluctuations without the need for explicit government action.

Transfer Payments

Payments made by governments to individuals or other government entities without receiving any goods or services in return, such as welfare benefits or subsidies.

Uncontrollable Budget Items

Government expenditures that are considered mandatory and not subject to annual review or adjustment by Congress, such as interest payments on national debt.