Many small governments provide more utility to individuals than one large government in most cases because _____
a. individuals have heterogeneous preferences and can move to an area that suits their taste for government
b. individuals have homogeneous preferences and can move to an area that suits their taste for government
c. the optimal sharing group for nearly all public goods is the local level
d. individuals generally have a preference for local government
a
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Which of the following is likely to happen if there is an increase in entrepreneurial activity in an economy?
A) The productivity of the economy will increase. B) The inflation rate in the economy will decrease. C) The exchange value of its currency in the foreign exchange market will increase. D) The income per capita of the economy will fall.
The economy is currently operating at a point on its physical production possibilities frontier (physical PPF). It is
A) producing Natural Real GDP and operating below the natural unemployment rate. B) producing more than Natural Real GDP and operating above the natural unemployment rate. C) producing more than Natural Real GDP and operating below the natural unemployment rate. D) in long-run equilibrium.