Expansion in the Size of Government Relative to the Market

question 87

Multiple Choice

Expansion in the size of government relative to the market sector will eventually retard economic growth because

• A) larger governments will be more involved in activities for which they are ill-suited.
• B) the higher taxes to finance a bigger government will lead to larger and larger deadweight losses from taxation.
• C) the incentive to engage in innovative activities and respond to change is weaker in government than in the market sector.
• D) all of the above are correct.

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Ultimate Meaning

The deepest significance or purpose of existence, often explored in philosophical, spiritual, and religious contexts.

Consensual Unit

A social or familial group formed based on mutual agreement or consent, rather than through legal, blood, or traditional binds.

Economic Cooperation

A type of arrangement in which parties agree to work together towards common or mutual economic goals, often including trade agreements, shared investments, and collaborative projects.

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