Which of the Following Is an Implication of the Tiebout

question 43

Multiple Choice

Which of the following is an implication of the Tiebout model?

• A) Local government should provide public goods characterized by a weak tax-benefit linkage.
• B) Local government should provide public goods characterized by a strong tax-benefit linkage.
• C) Local governments should provide public goods regardless of tax-benefit linkage.
• D) State or federal governments should provide public goods regardless of tax-benefit linkages.

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Definitions:

Void Contract

A contract that is legally unenforceable from the moment it was created.

Promissory Estoppel

An equitable doctrine that protects those who foreseeably and reasonably rely on the promises of others by enforcing such promises when enforcement is necessary to avoid injustice, even though one or more of the elements normally required for an enforceable agreement is absent.

Merchants

Individuals or businesses engaged in the trade of goods, services, or commodities for profit.

Nonmerchants

Individuals or entities that do not regularly engage in selling goods or services and therefore may not be held to the same standards as merchants in commercial transactions.