Under Democratic Representative Government, Spending on a Government Program Will

question 44

Multiple Choice

Under democratic representative government, spending on a government program will likely be larger than the amount consistent with economic efficiency when

• A) tax costs are levied in direct proportion with the benefits received.
• B) both the costs and benefits are widespread among the voters.
• C) benefits of the program are highly concentrated, while the costs are widely dispersed among voters.
• D) costs of the program are highly concentrated, while the benefits are widely dispersed among voters.

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Definitions:

Alertness

The quality of being quick to notice and react to opportunities or potential threats.

Scale

The process of increasing or expanding the scope of a company's operations or its ability to serve more customers effectively.

Market Size

The total volume of a product or service that is available for purchase within a particular market, often measured in terms of sales value or volume.

Design Pathway

A pathway that can uncover high-value opportunities because the entrepreneur is focusing on unmet needs of customers, specifically latent needs.