One Justification for the Creation of a Federal Level of Government

question 43

Multiple Choice

One justification for the creation of a federal level of government is:

• A)the ability to deficit spend.
• B)economies of scale in the provision of military defense.
• C)to encourage local diversity in the types of public goods provided.
• D)greater responsiveness to the will of the voters.

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Definitions:

Low Power of Suppliers

A business situation where suppliers have little control over the pricing and terms of products being supplied, enhancing the bargaining power of the purchasing company.

Hypercompetition

An extremely competitive business environment characterized by rapid and constant changes in technology, customer preferences, and market dynamics.

Attractive Industry

A sector of the economy that offers significant opportunities for investment, growth, and profitability, making it appealing to businesses and investors.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, often leading to less competition.