As the Size of Government Increases as a Share of the Economy

question 157

Multiple Choice

As the size of government increases as a share of the economy,

• A) the burden of deadweight losses of taxation generally diminishes.
• B) the rate of return derived from projects undertaken by the government will tend to increase.
• C) the government generally becomes more heavily involved in unproductive and even counterproductive activities.
• D) the activities of government are generally limited to protective functions such as public safety , national defense, and provision of a limited set of public goods.

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Definitions:

Analogy

A comparison between two things, typically for the purpose of explanation or clarification.

Acceptance Stage

A phase in the psychological process of grieving or coping, where an individual comes to terms with a reality or situation.

Learning

The acquisition of knowledge or skills through experience, study, or being taught.

Demonstrates

The action of showing or proving something through example or evidence, often used in educational and professional contexts.