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Suppose There Was a Debate Regarding How to Spend $1

Question 74

Multiple Choice

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. The Republican says that, on average, military spending does the most good so more is better. The Democrat is arguing that the extra food purchased by the extra spending will increase well-being the most. What is going on here?


A) Both are employing marginal analysis, just from different perspectives
B) Only the Democrat is using marginal analysis.
C) Only the Republican is using marginal analysis.
D) Neither are using marginal analysis.

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