If Government Believes That Tiebout Sorting Is Optimal,which of the Following

question 31

Multiple Choice

If government believes that Tiebout sorting is optimal,which of the following is TRUE?

• A) School spending should be equalized across districts.
• B) School spending should not be equalized across districts.
• C) Local property taxes should not be linked to local education spending.
• D) Property taxes should be the same in each community.

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Definitions:

Equilibrium Wage

The salary point at which labor supply aligns perfectly with labor demand.

Marginal Product

The additional output that is produced by employing one more unit of a factor of production, holding other factors constant.

Equilibrium Wage

The wage rate that balances the quantity of labor supplied and the quantity of labor demanded.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products sold by all firms, and no barriers to entry or exit.