If for Every Dollar Increase in Farm Subsidies the Government

question 43

Multiple Choice

If for every dollar increase in farm subsidies the government decreased urban welfare payments by a dollar,we would expect the net effect to be

• A)an increase in the budget deficit because government spending has increased
• B)a decrease in the budget deficit because transfer payments are not included in the government's budget
• C)an increase in the budget deficit because transfer payments have increased
• D)an increase in the budget deficit because farm subsidies are transfer payments but urban welfare payments are not
• E)no change in the budget deficit

---

Definitions:

Emotional Intelligence

The ability to understand, use, and manage one's own emotions in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges, and defuse conflict.

International Empathy

The capacity to understand and appreciate the feelings, thoughts, and experiences of people from different countries or cultures.

Ethnocentric

The belief in the superiority of one's own ethnic group or culture, often accompanied by a generalized view of other cultures.

Geocentric

An approach in international business where company policies are based on global standards rather than local or home country practices.