When a state road has a pothole, the state department of transportation is responsible for filling it. When a local road has a pothole, the town is responsible for filling it. Either way, the money ultimately comes from the taxpayers. This is an example of how government at different levels:
a. cannot agree on areas of responsibility.
b. prevents markets from being profitable.
c. pays for public goods.
d. allows free riders to take advantage.
c. pays for public goods.
State and local taxes pay for public goods within each government's area of responsibility.
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What is the largest problem associated with using a tax to correct for an externality? Explain
What will be an ideal response?
A binding price ceiling may not help all consumers, but it does not hurt any consumers
a. True b. False Indicate whether the statement is true or false
Dexter Exploration is in the business of drilling offshore oil wells. What would economists call the production period over which Dexter could locate new oil fields, move its equipment to them, and drill wells?
a. the long run b. the short run c. the margin run d. the fixed term
At the Bretton Woods conference, all currencies were given
A. a fixed value. B. a floating value. C. a zero value. D. a par value.