Roughly One in Every ________ Dollars Spent by Local and State

question 46

Multiple Choice

Roughly one in every ________ dollars spent by local and state governments in recent decades was raised not by them but by the government in Washington.

• A)two
• B)five
• C)ten
• D)fifty
• E)one hundred

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Definitions:

Efficient Scale

The level of production at which a firm's average total costs are minimized.

Monopolistically Competitive

A market structure where many sellers offer products or services that are similar but not perfect substitutes, allowing for some degree of market power.

Product-variety Externality

The impact on consumer welfare or market efficiency due to variety in products available, often seen as a positive externality in markets.

Business-stealing Externality

A negative effect where a new entrant in a market draws customers from existing businesses, potentially harming those businesses without creating new value for the market as a whole.