Suppose there was a debate regarding how to spend $1 billion in newly found revenues in the budget. Suppose the most liberal Democrat suggests an increase to Food Stamp (SNAP)allotments. Suppose the most conservative Republican suggests an increase in defense spending. Each is arguing that their plan will get the most good for the money. What is going on here?

Question

Quizplus · Accepted Answer

Both the Democrat and Republican are using marginal analysis by arguing that their plan will produce the most benefit for the money. The difference in their perspectives reflects their differing values and priorities.

Suppose There Was a Debate Regarding How to Spend $1