Consider the Allocation of a Nation's Resources Between Additional Public-Sector

question 15

Multiple Choice

Consider the allocation of a nation's resources between additional public-sector spending versus additional private spending.James Buchanan argued that

• A)given the current size of government,the value of the marginal dollar spent by government is less than the value of that dollar left in the hands of households or firms.
• B)public sector spending is always subject to corruption and is therefore not as valuable as private spending.
• C)the marginal utility of an additional dollar's worth of spending on public goods is higher than an additional dollar's worth of spending on private goods.
• D)compared to public spending,private spending leads to more sustained long-run economic growth.
• E)compared to private spending,public spending leads to more sustained long-run economic growth.

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Definitions:

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Taking initiative by acting in advance of future situations or problems, rather than just reacting.

Globalization

The process by which businesses or organizations develop international influence or start operating on an international scale, leading to a more interconnected and interdependent world.

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