The primary problem with entitlements, from a budgetary perspective, is that _____.
a. expenditures are much harder to control than for non-entitlements
b. they add to the uncertainty of the budgetary process because it is difficult to predict how many individuals will be eligible
c. it is impossible to control spending on entitlements once created
d. a and b
e. all of the above
Question 2
Max has allocated 100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max is currently at point e,
A) his MRS is less than the trade-off offered by the market.
B) he is willing to give up more burger than he has to, given market prices.
C) he is not maximizing his utility.
D) All of the above.
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