Public Choice Analysis Explains That

question 28

Multiple Choice

Public choice analysis explains that

• A) politicians have strong incentives to favor deficit finance over tax finance.
• B) policy makers believe the budget should be balanced except in times of war.
• C) the legislator who is a spending "watch dog" can save her constituents a substantial amount of tax money.
• D) given the way Congress operates, the apparent popularity of deficit financing is surprising.

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Definitions:

Conformance

Adherence to a set of standards, specifications, or regulations designed to ensure quality and compliance in products or services.

Capital Equipment

Long-term assets, such as machinery or buildings, used in the production of goods or services.

Final Cost

The total amount of expenses incurred at the completion of a project or the production of a good, inclusive of all charges and adjustments.

Capital Items

Long-term assets acquired for the purpose of generating income, not intended for resale in the normal course of business.