Author Question: If Libby can produce 20 gallons of beer or 5 gallons of wine per hour, her opportunity cost of one ... (Read 220 times)

jlmhmf

  • Hero Member
  • *****
  • Posts: 552
If Libby can produce 20 gallons of beer or 5 gallons of wine per hour, her opportunity cost of one gallon of beer is 4 gallons of wine.
 
  Indicate whether the statement is true or false

Question 2

Give two disadvantages of using an expenditure-based fiscal policy over a taxation-based fiscal policy.
 
  What will be an ideal response?


efwsefaw

  • Sr. Member
  • ****
  • Posts: 351
Answer to Question 1

FALSE

Answer to Question 2

One major disadvantage of using an expenditure-based fiscal policy is the lag in implementation. In contrast, taxation-based fiscal policy can advance much more quickly. Secondly, the urgency of increasing expenditure during a recession makes it harder to identify and efficiently implement the projects that are socially beneficial. In addition, most of the projects with the highest social return have been funded already, raising the chance that a new project won't be socially desirable. Finally, politics and special interests sometimes gets in the way, increasing the chances that bad projects get funded. In case of taxation-based policies, the additional spending required to boost economic growth is done by households themselves, so that the money is spent on goods and services that households value.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

For a complete list of videos, visit our video library