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Assignment: Budget Deficit
Answer the following in 150 word must provide references
a. What is the Budget Deficit? Is it dangerous?
b. Which was the budget deficit since 1950 (the Federal Reserve website is one place were you can find data)? You can also see the Congressional Budget Office website.
c. Do you expect Budget Surplus or Deficit in year 2017? Why?
d. The President has indicated that the Military expenses will be increased in 10% (around $ 50 billion) and that savings from other Government agencies will be reduced in the same amount. Is that possible? Can be done legally or laws have to be changed?
e. Which are the economic consequences of the budget deficit. Which are the winners and losers?
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
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Case study analysis about optimum resource allocation: - Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..
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Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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