1. When political officials are elected democratically, can they be counted on to pursue policies that promote the general welfare of the populace?
2. What is the special interest effect? What does it imply about the efficiency of how goods and services will be allocated through the political process?

Visit theFederal Reserve Bank of St. Louis FRED Database(http://research.stlouisfed.org/fred2/series/FYFSD).

Locate the latest budget figure. What is it in billions of dollars?(Note:Be sure to report the Fed's figure inbillionsof dollars. For example: 100,000 million = 100 billion)

1. What does this figure indicate about government revenues and expenditures?

4.Visit the websiteU.S. Debt Clock(opens new window)(plaintextlink:http://www.usdebtclock.org).

What is thenational debtin trillions of dollars?

5.how the budget situation identified inquestion 3impacted the public debt figure inquestion 4.

In other words, what is the difference between the deficit and the debt?How are they related?