Question 27

1. Budget deficits are attractive to politicians because the deficits
2. a. make it possible to provide benefits to voters without having to impose corresponding taxes.
3. b. are normally offset by prior budget surpluses.
4. c. make the costs of government more visible to voters than current taxation.
5. d. make it possible for the government to employ resources without incurring costs.

Question 28

1. Rent-seeking behavior refers to the practice of
2. a. landlords who provide lower rents for housing units.
3. b. politicians trading votes to get the necessary support to pass desired legislation.
4. c. economists using resources to determine who bears the burden of a tax.
5. d. businesses and other groups using resources to obtain favors from the governmen