To Choose the Optimal Level of Government Expenditures, G*, the Government

Multiple Choice

To choose the optimal level of government expenditures, G*, the government

A) must know the preferences of all consumers over private and public goods.
B) needs only to balance the budget, as any level of G is Pareto-optimal.
C) must minimize the tax burden.
D) must know the preferences of all consumers and minimize the tax burden.
E) must obtain the correct balance between military spending and social programs.