True or False 31.The decline in the percentage of the federal government’s budget devoted to national defense is evidence of the lack of new demand for U.S. military activity. a.True b.False 32.In 2000, total United States spending on national defense was less than five percent of GDP. a.True b.False 33.The first priority of national defense spending is the defense of economic interests abroad. a.True b.False 34.Determining the optimal level of military expenditures is easy because the preferences of the median voter a reflected in the vote for president a.True b.False 35.If two nations are equally armed it is highly likely that neither will initiate a conflict. a.True b.False
True or False
31.The decline in the percentage of the federal government’s budget devoted to national defense is evidence of the lack of new demand for U.S. military activity.
a.True
b.False
32.In 2000, total United States spending on national defense was less than five percent of GDP.
a.True
b.False
33.The first priority of national defense spending is the defense of economic interests abroad.
a.True
b.False
34.Determining the optimal level of military expenditures is easy because the preferences of the median voter a reflected in the vote for president
a.True
b.False
35.If two nations are equally armed it is highly likely that neither will initiate a conflict.
a.True
b.False
36.The optimal sharing group for national defense is the size of a nation.
a.True
b.False
37.Spending so much on arms that the economy of an adversary collapses is called market warfare.
a.True
b.False
38.Dictatorships, whether stable or unstable, always have longer time horizons than U.S. presidents.
a.True
b.False
39.Fixed fee contracts are desirable when there is little uncertainty regarding the output.
a.True
b.False
40.The appropriate contract for the development of a one-of-a-kind submarine employing a considerable amount of new technology is a fixed fee contract.
a.True
b.False
41.Under a cost plus fixed fee contract the contractor cannot make a loss.
a.True
b.False
42.Compared to a cost plus incentive fee contract, the cost plus percentage fee contract has strong incentives to minimize costs.
a.True
b.False
43.The true cost of any product purchased by the military is its purchase price.
a.True
b.False
44.For small armies, a volunteer army would be less costly.
a.True
b.False
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