Under democratic representative government, spending on a government program will likely be larger than the amount consistent with economic efficiency when
a. tax costs are levied in direct proportion with the benefits received.
b. both the costs and benefits are widespread among the voters.
c. benefits of the program are highly concentrated, while the costs are widely dispersed among voters.
d. costs of the program are highly concentrated, while the benefits are widely dispersed among voters.
C
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The table above shows the supply of loanable funds and the demand for loanable funds schedules
a. What is the equilibrium real interest rate and the equilibrium quantity of loanable funds? b. If the real interest rate is 4 percent, is there a shortage or surplus? What will happen in the market?
According to the quantity theory of money, if an economy produces 5,000 units of output, its money supply equals $40,000 and the velocity of money equals one, then the price level will equal:
a. $0.13. b. $1.25. c. $8. d. $200. e. $8,000.
If at an interest rate of 7 percent, planned investment is $2 trillion, government spending is $3 trillion, net taxes are $2.8 trillion, and household saving is $2.2 trillion, what is the quantity of funds demanded at an interest rate of 7 percent?
a. $1.8 trillion b. $2.2 trillion c. $2.8 trillion d. $5.0 trillion e. $5.8 trillion
For automobile demand in the U.S., the income response tends to be larger in the:
A. The income response is the same in the long run and the short run. B. long run. C. We do not have enough information to answer this question. D.short run.