TERMS & CONSEPTS-Define the following concepts by providing concrete
examples.
1. Entitlement spending & discretionary spending
2. Automatic & discretionary stabilization & austerity
3. Cash accounting & capital accounting
4. Static scoring & dynamic scoring
5. Pure public goods & impure public goods
6. Free-rider problem & crowding-out
7. Contingent valuation & compensating differentials
8. Cost-benefit analysis & cost-effectiveness analysis
9. Lindhal pricing & Arrow’s theorem
10.Public choice theory & government failure
11.Fiscal federalism & fiscal equalization
12.Block grants & matching grants
13.Educational vouchers & (higher education) loans
