Suppose the U

Multiple Choice

Suppose the U.S.government has an annual budget of about $4 trillion.Does the U.S.government face the problem of scarcity?

A) No, a government with $4 trillion in spending faces no real constraints.
B) No, scarcity does not apply to governments.
C) Yes, resources are limited even for the U.S.government.
D) Yes, although the U.S.government can easily obtain more resources.
E) Uncertain, economic theory has no answer to this question.