Public Choice Theory Indicates That Representative Government Yields Outcomes More

question 55

Multiple Choice

Public choice theory indicates that representative government yields outcomes more consistent with economic efficiency when a close relationship exists between the benefits received and the costs borne by each voter. Which of the following methods of financing a government program will most likely result in a close relationship between voter benefits and costs?

• A) progressive income tax
• B) retail sales tax
• C) property tax
• D) user charges

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Definitions:

Trade Disputes

Conflicts that arise between countries or businesses over aspects of trade, such as tariffs, trade barriers, or unfair trade practices.

Trade Experts

Individuals with extensive knowledge and experience in the field of trade, often providing analysis, advice, or consultancy services.

Members

Individuals or entities that belong to a group, organization, or a specific category, often with shared interests or goals.

Multinational Firms

Companies that operate in multiple countries, managing production or delivering services in more than one country outside of their home base.