What are the opportunity costs of reducing expenditures (such as on education and social services programs), compared to the option of raising taxes? Why?.
On what basis do you make economic decisions? One potential approach is to employ the cost-benefit principle, which suggests engaging only in those actions that create an economic surplus. Considering other criteria such as opportunity costs helps you to make a rational choice. For example, when budget crises occur, local or national governments may opt to cut back on critical programs, while many others may consider raising taxes.
Post by Day 3 a 250- to 300-word statement that addresses the following:
- What are the opportunity costs of reducing expenditures (such as on education and social services programs), compared to the option of raising taxes? Why?
- Explain what you think are the rational choices in such a situation, and what other options should be considered and why.
Read a selection of your colleagues postings.
Respond by Day 6 to two or more of your colleagues postings in one or more of the following ways:
- Ask a probing question.
- Share an insight from having read your colleagues posting.
- Offer and support an opinion.
- Make a suggestion.
- Expand on your colleagues posting.
Return to this Discussion in a few days to read the responses to your initial posting. Note what you learned and the insights you gained as a result of the comments your colleagues made.
Be sure to support your work with specific citations from the Learning Resources and any additional sources.