Question

RUE AND FLASE 1. Transfer payments, including Social Security and welfare and medical assistance, account for nearly 60 percent of federal government expenditures. 2. State governments do not fund any part of Medicaid. ent consumption does not require resources to be reallocated from private to government use. 4. Positive economic analysis is based on underlying value judgments 5. "The government should abolish tariffs to achieve efficiency" is a normative statement. 6. Efficient outcomes are often viewed as inequitable. 7. A government subsidized price for a commodity that is higher than the market driven price results in oversupply relative to the efficient allocation.

Answer 1

As per rules I am answering the first 4 subparts of the question

1: True

In 2008, transfer payments accounted for 60% of the government spending.

2: False

The Medicaid program is jointly funded by the federal government and states.

3: False

Resources have to be allocated from private use for the purpose of Government spending.

4: False

Normative economic analysis is based on values.