Giving Local Governments More Power Is Less Dangerous Than Giving

question 66

Multiple Choice

Giving local governments more power is less dangerous than giving the same power to the national government because

• A) local governments generally have more strict constitutional rules they must operate under.
• B) it is easier to vote in local elections than national elections.
• C) only national-level governments are allowed to use coercive force.
• D) higher exit options exist at the local level--it is easier for people to move away from a bad local government.

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Definitions:

Marginal Revenue Curve

A graphical representation showing how the revenue from selling one more unit of a good or service changes as production volume changes.

Price-searcher Firm

A company that has the ability to set the price for its products because it does not face perfect competition.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of product.

Profit-maximizing Output

The level of production at which a company achieves the highest possible profit.