Government Decision Making is based on the fact that resources are limited (Scarce) and must be used in the most efficient manner. When deciding what to do with their resources, a government has to weigh the opportunity costs associated with their decision. i.e. Is this the best way to use that resource? Resource: Money Possible Uses: Defense (Military), education, welfare, etc… When the needs of the country changes, and the resource is no longer being used in the most efficient manner (The opportunity cost of that decision is too great), the government must re-prioritize the uses of that resource

Random aside…The craziest turtle, ever

Government Decision Making in Action: Corn Subsidies Farm Subsidies are payments that the government makes to farmers to help with the up and down fluctuation of the farming industry. –In other words, this is free money to farmers, particularly corn growers. Because corn farmers have been prospering recently (after all, corn is used to make a renewable energy source, ethanol), they’ve been making tons of cash –But still getting government money

Intertwined Subsidies (from washingtonpost.com 1.What is the scarce resource our government is using on Farm Subsidies? 2.Can our government really justify it’s corn subsidies? Why/why not? 3.What might be some opportunity costs of this subsidy spending?