Read the scenario below.

A local board of education is preparing the budget for the next fiscal year. The board decides to pay for repairs to school buildings instead of buying new computers.

What economic concept applies in this situation?

Suppose the President and leaders of Congress agreed to increase funding for the military and for education, while not funding protection of wetlands for migrating cranes.

Which of these does the above decision reveal about economic costs and benefits?

Which of these United States government actions is most directly related to the goal of economic equity?

Read the news article excerpt below.

The benefits of the program in the excerpt are expected to outweigh the costs because

Which of these would most likely result if Congress increased the minimum wage?

What is the opportunity cost for state governments that spend state money during natural disasters?

The federal minimum wage in 2001 was $5.15 an hour.

Which of these best describes why the federal government would raise the minimum wage?

Read the news article excerpt below.

The action described in the article above is intended to

Many states require people who receive public assistance to work in exchange for payments.

Which of these statements is most likely a goal of this requirement?

Which of these best explains why state government leaders must carefully evaluate costs and benefits when developing budgets?

On July 5, 2000, Maryland launched a $9 million initiative designed to provide after-school activities for middle school students.

Which of these is the socio-economic goal of this policy or program?

In order to make driving safer, some citizens want a law prohibiting drivers from using cell phones while driving.

• Explain the economic costs and benefits of this law if it is passed.
• Based on the costs and benefits, do you support or oppose the law? Explain why.
• Include details and examples to support your answer.

Write your answer on the lines in your Answer Book.

A local government allocates funds to expand an elementary school.

Which of these most likely describes an opportunity cost of this policy?

Read the headline below.

Which of these responsibilities of government is most related to the event described in the headline?

Which of these would be an opportunity cost to a government offering a tax break to businesses that invest in new machinery?

Which of these is a way the government promotes economic equity and fairness?

The federal government passed a law reducing the amount of lumber that can be cut from national forests.

Which of these could be a result of this law?

Which of these is an economic cost of an airport being built near a small town?

Which of these is an economic benefit of lower tax rates?

A local government has a limited amount of money to spend. It decides to spend the money to support local businesses instead of to remove trash from unused buildings and vacant lots.

Which of these is the opportunity cost of this decision?

The federal government allows individuals to take income tax deductions for contributions they make to charities. This practice results in a loss of tax revenue for the government.

Which of these best explains why the government allows this type of tax deduction?

Read the information below and use it to answer the BRIEF CONSTRUCTED RESPONSE that follows.

In 2002, the Maryland General Assembly voted to purchase undeveloped land on the Chesapeake Bay before a construction company could purchase it. The state plans to use the land as a park for recreational activities.

• Describe the opportunity costs and the benefits of the purchase.
• Is it appropriate for the state government to buy undeveloped land? Explain why or why not.
• Include details and examples to support your answer.

Write your answer on the lines in your Answer Book.

Which of these is an economic benefit of the federal minimum wage law?

Which of these is the main economic cost of the federal government removing taxes on imported goods?

Which of these is an economic benefit of the government providing unemployment payments to people who have lost their jobs?

Read the headline below.

What is an economic cost most directly associated with the headline?

Which of these government actions would most directly promote economic security?

Which of these actions would most likely help workers develop job skills?

The governor of Maryland chose to cut spending on road construction in order to increase spending for school construction.

Which economic principle is best demonstrated by this decision?