Economic Theory Indicates That, the Size of Government Will Be

question 218

Multiple Choice

Economic theory indicates that, the size of government will be

• A) unrelated to economic growth.
• B) negatively related to economic growth at all possible sizes of government.
• C) positively related to economic growth at all possible sizes of government.
• D) positively related to economic growth at small levels of government but is negatively related to economic growth as government becomes larger and larger.

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Definitions:

Crop-Lien System

A credit system that existed in the Southern United States post-Civil War, where farmers, many of whom were sharecroppers, secured loans against future crop yields, often leading to debt and economic bondage.

Sharecroppers

Individuals who farm land owned by another and pay rent either in cash or shares of the crop, a system that emerged in the American South after the Civil War.

Constant Debt

A situation where an individual, organization, or country continually carries a financial obligation without significant reduction over time.

President Andrew Johnson

17th President of the United States, who served from 1865 to 1869, known for his efforts to quickly restore the Southern states after the Civil War, which led to his impeachment.