A Basic Objection to Increased Public Works Spending When Serious

question 29

Multiple Choice

A basic objection to increased public works spending when serious unemployment appears likely to develop is that

• A) such spending would lead to a budget deficit.
• B) such spending would lead to a decline in GDP.
• C) all public works projects are wasteful.
• D) there is a long lag between authorizing a program and actually spending the money.
• E) stabilization policy is more important than the long-run desirability of public works.

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Definitions:

Unincorporated Business

A business structure without a separate legal entity from its owner, where the owner is personally responsible for the business's debts and obligations.

Specialized Equipment

Tools or machinery designed for a specific, often technical or industrial, purpose, necessitating particular skills for operation.

Known Principal

A principal whose identity is disclosed to the third party by the agent at the time of a particular transaction.

Agent Liability

The legal responsibility of an agent to act in the best interest of their principal, facing consequences for failure to comply.