The primary distinction between an expenditure that is on budget and an expenditure that is off budget is _____.
a. that all off-budget expenditures are entitlements
b. that all on-budget expenditures are public goods or quasi-public goods
c. that Congress has determined the expenditures should be on budget or off budget
d. a and b
Question 2
Joe and Rita each have some cookies and milk. Joe is willing to trade 2 cookies for an additional ounce of milk. Rita is willing to trade four cookies for an additional ounce of milk.
If trading is possible, which of the following is most likely to occur? A) Joe will give some milk to Rita in exchange for cookies.
B) Rita will give some milk to Joe in exchange for cookies.
C) No trade will take place since they both prefer to have more milk and fewer cookies.
D) There is not enough information to make any predictions.
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