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Public choice theory indicates that representative government yields outcomes more consistent with economic efficiency when a close relationship exists between the benefits received and the costs borne by each voter. Which of the following methods of financing a government program will most likely result in a close relationship between voter benefits and costs?
University Education
The level of education focusing on specialized study provided by universities and other higher education institutions, typically leading to a degree.
University Tuition
The fee charged by educational institutions for instruction and other services related to academic enrollment.
Annual Payments
Recurring payments made once a year, such as dividends on stocks or interest on a loan.
Adjustable Rate Mortgages
Home loans with interest rates that can change over time, typically in relation to an index or a predefined benchmark.
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