From a Public Choice Viewpoint, the Persistent Budget Deficits of Recent

question 47

Multiple Choice

From a public choice viewpoint, the persistent budget deficits of recent decades are

• A) surprising, because politicians have a strong incentive to balance the government's budget.
• B) an expected result, because the political incentive structure makes it attractive for politicians to levy taxes rather than spend on current programs.
• C) surprising, because politicians have a strong incentive to run budget surpluses and thereby indicate that their actions have generated a profit.
• D) an expected result, because the political incentive structure makes it attractive for politicians to spend on current programs rather than levy taxes.

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Definitions:

Potential Coalition

A group of parties or individuals that could come together to form an alliance based on shared interests or goals, though they have not yet done so.

Proactive Action

Proactive action involves taking initiative and actions in anticipation of future problems, needs, or changes rather than reacting to events after they occur.

Critical Mass

The minimum amount or number required for a specific process, such as a chain reaction, to occur or to sustain itself.

Strength-Is-Weakness

A concept suggesting that what appears to be a strength in certain circumstances can become a weakness in others, particularly in negotiations or strategic situations.