_________ Is Most Likely to Take Place When State or Local

question 11

Multiple Choice

_________ is most likely to take place when state or local governments engage in competitive federalism.

• A)Provision of lower services to the people
• B)Imposing higher taxes on the people
• C)Restriction of influx of foreign investment
• D)Offering tax advantages to businesses

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Definitions:

Constant-cost Industry

An industry in which the costs of production, including inputs and labor, do not change as the overall industry output changes.

Resource Prices

The cost associated with acquiring the natural resources needed for production, such as minerals, timber, water, and land.

Output Increased

A situation where the production of goods or services in an economy rises.

Purely Competitive Market

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to firms being price takers.