One Reason the Size of the Government Is Large Is

question 106

Multiple Choice

One reason the size of the government is large is because

• A) people's demand for private goods grows faster than their demand for public goods.
• B) politicians do not support spending on things such as education and public health.
• C) voters' incomes grow, thereby causing an increased demand for private goods.
• D) budget maximization by bureaucrats and rational ignorance by voters lead to overproduction.
• E) rational ignorance by politicians who follow the principle of minimum differentiation.

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Definitions:

Taft-Hartley Act

A 1947 federal law that restricted the activities and power of labor unions in the United States.

Landrum-Griffin Act

A 1959 U.S. federal law formally known as the Labor-Management Reporting and Disclosure Act, which aims to protect union members' rights and promote democracy within labor organizations.

Pure Monopsonist

A market condition where there is only one buyer for a product or service, giving this buyer significant control over the market.

Market Equilibrium Wage

The market equilibrium wage is the rate of compensation for labor where the quantity of labor supplied by workers matches the quantity of labor demanded by employers, resulting in no excess supply or demand in the job market.