Because We Face Scarcity, Every Choice Involves

question 197

Multiple Choice

Because we face scarcity, every choice involves

• A) money.
• B) the question "what."
• C) giving up something for nothing.
• D) an opportunity cost.

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Definitions:

Budget Deficits

A financial situation where expenditures exceed revenue.

Federal Budget

An annual financial statement presenting the government's proposed revenues and spending for a fiscal year.

Crowds Out

Refers to the effect where increased government spending and borrowing reduce private investment in the markets.

Fiscal Policy

Governmental adjustments of its spending levels and tax rates to influence a nation's economy.