How Does Democracy Affect the Likelihood That Necessary Public Goods

question 8

Multiple Choice

How does democracy affect the likelihood that necessary public goods will be provided?

• A)More representative institutions are likely to give more weight to public concerns about overall economic growth.
• B)Having elections makes democratic governments more susceptible to the influence of special interest groups who resist economic reforms.
• C)Since citizens oppose tax increases,democracies are often unable to raise the revenue necessary for providing public goods.
• D)In general,dictatorships are more likely to provide public goods than democratic countries.
• E)Citizens in democracies are more likely to organize and provide public goods themselves.

---

Definitions:

Taxes

Mandatory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Federal Transfer Payments

Payments from the federal government to individuals, states, or other governmental entities without any requirement for repayment.

GDP

GDP, the cumulative market price of all ultimate goods and services produced within the confines of a country over an allotted timeframe.

Government

The system or group of people governing an organized community, often a state, including institutions and mechanisms that regulate and guide the community or society.