The Office of Management and Budget Is Primarily Responsible for

question 101

Multiple Choice

The Office of Management and Budget is primarily responsible for

• A) overseeing procurement of services for the federal government.
• B) monitoring the flow of money throughout the economy.
• C) helping the president monitor federal budget expenditures and proposals.
• D) investigating the bureaucracy on behalf of Congress.

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Definitions:

Externalities

Externalities are unintended side effects of economic activity affecting third parties not directly involved in the transaction, which can be either positive or negative.

Pollution Permits

Legal rights granted by governments to emit a specific amount of pollutants into the environment.

Corrective Tax

A tax designed to incentivize socially desirable behavior, often used to correct for the negative externalities of an action or consumption.

Coase Theorem

A principle that asserts that if private parties can bargain over the allocation of resources without cost, they can solve the problem of externalities on their own.