In the Years After 1968, There Was a Transfer of Power

question 70

Multiple Choice

In the years after 1968, there was a transfer of power from the national government to the state governments. This transfer of power is called

• A) cooperative federalism.
• B) revolution.
• C) regression.
• D) devolution.
• E) dual federalism.

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Definitions:

Leakages-Injections Approach

An economic understanding and analysis of how savings, taxes, and imports (leakages) offset government spending, investments, and exports (injections) in the circular flow of income.

Value Added

The increase in worth of a product or service as a result of a particular process, often characterized by the difference between the price of the finished product and the cost of the inputs involved in making it.

Raw Materials

Basic materials extracted from natural resources or produced through agriculture, which are used in the production of goods and services.

Injection

Any spending other than by households or any income other than from resource earnings; includes investment, government purchases, exports, and transfer payments.