Economic Theory Indicates That, the Size of Government Will Be

question 218

Multiple Choice

Economic theory indicates that, the size of government will be

• A) unrelated to economic growth.
• B) negatively related to economic growth at all possible sizes of government.
• C) positively related to economic growth at all possible sizes of government.
• D) positively related to economic growth at small levels of government but is negatively related to economic growth as government becomes larger and larger.

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Definitions:

Spurious Relationships

An apparent but false relationship between two variables that is actually caused by a third variable.

Selection Bias

A distortion in the analysis resulting from the method of collection of data, where the sample is not representative of the population being studied.

Experimental Groups

Groups in an experiment that receive the treatment or intervention being tested.

External Validity

The extent to which the results of a study can be generalized to other situations and to other people.