The Unspoken Agreement Between Rulers and the Ruled in Which

question 28

Multiple Choice

The unspoken agreement between rulers and the ruled in which the ruled agree to be taxed in return for services, such as public goods, best describes which of the following?

• A) social contract
• B) quasi-voluntary compliance
• C) political constraint
• D) stateness

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Definitions:

Efficient Allocations

The process of distributing resources in a way that optimally utilizes them to achieve maximum productivity and utility without any wastage.

Federal Gasoline Tax

A tax imposed by the federal government on the sale of gasoline, used primarily to fund transportation infrastructure projects like highways and bridges.

Substitutes

Products or services that can replace each other in use, such that an increase in the price of one leads to an increase in the demand for the other.

General Equilibrium

A condition in economics where supply and demand are balanced across all markets in the economy simultaneously.