Tugas Pertemuan 5 DISCUSSION QUESTIONS

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Tugas Pertemuan 5
DISCUSSION QUESTIONS
1. Explain the difference between transfer expenditures by government and other
expenditures. How should each be treated in evaluating the size of government?
2. Describe in some detail the budget of the federal government for the current fiscal
year. Look at data for the past few years to determine the time trends of each
component. As you construct your review of recent history, be sure to cover at least
two presidential administrations. Can you see any changes in the trends through the
transitions? Also, use real, not nominal, figures in your analysis.
3. From a global point of view, defense spending is a waste of resources. From a
national point of view, defense spending might be a necessity. Discuss the
distinction. Provide your own normative value judgment.
4. Evaluate: “It pays a country to specialize for the same reason that it pays an
individual to specialize.” What conditions must be met for this statement to hold for
nations? For people ?
5. International trade results in a more efficient employment of the world’s productive
forces.” In exactly what sense is this true? How would you demonstrate that “more
efficient employment” actually did occur as a result of trade? Explain.
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