Author Question: Does the term mandatory spending mean that spending must go on forever? A) Yes, Congress has no ... (Read 35 times)

Mr. Wonderful · **on:** Jun 30, 2018

Does the term mandatory spending mean that spending must go on forever?

A) Yes, Congress has no right to change these spending programs.
B) Yes, the laws which authorized this spending cannot be changed.
C) No, once appropriated, spending is for the life of the program only or until it changes.
D) Yes, once appropriated, spending is indefinite.

Question 2

If the dollar price of a good manufactured in the U.S. is 6 and the dollar price of the same good manufactured in India is 8, should retailers of the good in the U.S. purchase the good from Indian suppliers or from American suppliers?

What will be an ideal response?

Jbrasil · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

The ratio of dollar price of U.S. toy to the dollar price of an Indian toy is 6/8 = 0.75. Since this ratio is less than one, toy resellers in the U.S. should purchase toys from American suppliers rather than Indian suppliers.