When the Federal Government Sets Up Guidelines and Expects the State

question 32

Multiple Choice

When the federal government sets up guidelines and expects the state to pay for enforcement, this is called ______.

• A) fiscal federalism
• B) unfunded federalism
• C) administrative federalism
• D) cooperative federalism

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Definitions:

Price Setter

A business or entity that has the ability to influence or determine the price of goods or services in the market, often due to a lack of competition.

Elasticities Differ

The principle that different goods or services have varying sensitivities to changes in price or income.

Inelastic Demand

A situation in which the demand for a product does not change significantly when the price of the product changes.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, meaning a small price change can cause a large change in quantity demanded.