Samuelson's Theory of Public Expenditure Demonstrates That

question 216

Multiple Choice

Samuelson's theory of public expenditure demonstrates that

• A) government is inefficient and will always engage in too much spending.
• B) an optimal (or most efficient) level of output exists for every public good.
• C) an efficient mix of public goods is produced when local land/housing prices and taxes come to reflect consumer preferences.
• D) through government regulation of private industry, the optimal level of public good provision is achieved.