In a Federal System of Government What Is the Role

question 69

Multiple Choice

In a federal system of government what is the role of the national government when disputes arise between states?

• A) The federal government is powerless in disagreements between states.
• B) The federal government has legislative powers to arbitrate disagreements between states.
• C) Disagreements between states are arbitrated by a council of state executives; the federal government has no role.
• D) The federal government has an equal vote and stake, as do the two or more states that are disagreeing.
• E) The high courts of the states in disagreement arbitrate the dispute without interference of the federal government.

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Definitions:

Allocative Efficiency

A state of the economy in which resources are allocated in a way that maximizes the overall benefit to society, with goods and services produced at their highest-valued uses.

Purely Competitive

A market format where numerous small companies offer an identical product with no barriers to entering or leaving the market, resulting in firms accepting the market price as given.

Marginal Benefit

The further utility or pleasure gained from consuming one additional unit of a good or service.

Creative Destruction

A concept in economics introduced by Joseph Schumpeter, describing the process by which old industries or technologies are destroyed and replaced by new ones.