Suppose There Was a Debate Regarding How to Spend $1

question 28

Multiple Choice

Suppose there was a debate regarding how to spend $1 billion in newly found revenues in the budget. Suppose the most liberal Democrat suggests an increase to Food Stamp (SNAP) allotments. Suppose the most conservative Republican suggests an increase in defense spending. The Republican says that, on average, military spending does the most good so more is better. The Democrat is arguing that the extra food purchased by the extra spending will increase well-being the most. What is going on here?

• A)Both are employing marginal analysis, just from different perspectives
• B)Only the Democrat is using marginal analysis.
• C)Only the Republican is using marginal analysis.
• D)Neither are using marginal analysis.

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Definitions:

Sample Variance

A metric indicating the spread or variation in a set of sample data, determined by dividing the sum of the squared differences from the mean by the total number of data points minus one.

Sample Variance

A measurement of the spread between numbers in a data sample, calculated by taking the mean of the squared deviations from the sample mean.

Squared Deviations

The squared differences between each observation and the mean, used in the calculation of variance.

Deviations Squared

The squares of the differences between individual data points and the mean of those points, used in calculating variance.