The U.S.government has an annual budget of about $1,600 billion.Does the U.S.government face the problem of scarcity?
A) No, a government with $1,600 billion faces no real constraints.
B) No, scarcity does not apply to governments.
C) Yes, resources are limited even for the U.S.government.
D) Yes, although the U.S.government can easily obtain more resources.
E) Uncertain-economic theory has no answer to this question.

Question

Quizplus · Accepted Answer

Scarcity applies to all entities, including governments. Despite having a large budget, the U.S. government still faces limitations on resources and must make choices on how to allocate them.

The USGovernment Has an Annual Budget of About $1,600 Billion