A political candidate promises voters more funding for AIDS research and child care and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.

Question

Quizplus · Accepted Answer

If the economy has unemployed resources, it may be possible to increase funding for AIDS research and child care without sacrificing any other goods or services. This is because the economy is not using all of its available resources and can allocate them towards these programs without negatively impacting the production of other goods and services. However, if the economy is producing at its maximum potential, any additional funding for these programs would require reallocation of resources from other areas, resulting in a tradeoff.

A Political Candidate Promises Voters More Funding for AIDS Research