Public Broadcasting, in Its Fund Drives, Often Arranges for a Corporation

question 30

Multiple Choice

Public Broadcasting, in its fund drives, often arranges for a corporation to match donations made by its employees. This is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.

• A) reduce; smaller
• B) reduce; larger
• C) increase; smaller
• D) increase; larger

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Definitions:

Crowding-out

is an economic theory suggesting that increased government spending leads to a reduction in private sector spending, potentially due to higher interest rates.

Full Employment

A situation in an economy when all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical unemployment.

Annual Deficit

The shortfall in a government's income compared to its spending in a given fiscal year.

George Bush

Refers to either George H.W. Bush, the 41st President of the United States (1989-1993), or his son George W. Bush, the 43rd President of the United States (2001-2009), each having made lasting impacts on American and international politics.