Tiebout local public good provision is more easily implemented than a Lindahl equilibrium -- because people know each other's tastes locally and can more easily come up with the right way to divide the cost for public goods.
Answer the following statement true (T) or false (F)
False
Rationale: The Tiebout public good equilibrium does not rely on people knowing each other's tastes --- rather it depends on people sorting into communities based on each others' tastes.
Economics
You might also like to view...
An increase in the money supply is a discretionary fiscal policy which will increase aggregate demand
Indicate whether the statement is true or false
Economics
An increase in the price of fuel and fertilizer used for corn would cause farmers to increase corn production in an effort to make up for lost profits
Indicate whether the statement is true or false
Economics