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.

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Definitions:

Stock Index Futures

Contracts mandating the sale and purchase of a specified stock index at an agreed-upon price and date in the future by the seller and buyer, respectively.

Stock Index Futures

Futures contracts where the underlying asset is a stock market index, used for speculation or hedging against market movements.

Multiplier

In economics and finance, a factor that quantifies the impact of an increase in spending or investment on the overall income or output of an economy, often used to measure the effects of fiscal policy.