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Issues in Economics Today
Issues in Economics Today
Robert Guell, Indiana State University

Federal Spending

Web-Based Issues Questions

Web Question 9.1

Click on the this link

http://w3.access.gpo.gov/usbudget/fy2003/pdf/hist.pdf

Go to “Government Outlays by Function”

Note the progression of spending on various types of government operations through time. Note that the tables present data in actual dollar terms, in percentages of outlays and as a percentage of GDP. Which of these measures is most valid in your mind in measuring the importance of this area of government spending in American life?.

Web Question 9.2

Click on this link

http://www.unicef.org/sowc96/8mlitary.htm

Read the article and consider this use of “opportunity cost” in government spending. Is this a good application of the concept? Why might the conclusion of the article be subject to the “correlation and causation” fallacy from Chapter 1?





McGraw-Hill/Irwin