According to economic theory, elected government officials will favor
A) federal budget surpluses.
B) balanced federal budgets.
C) federal budget deficits.
D) shrinking federal budgets.
Question 2
Positive externalities are created by people when they
A) add to the net real income of society.
B) are altruistic or concerned for the welfare of others.
C) benefit others without intending to do so.
D) increase the general welfare.
E) promote the happiness of others.
