Samuelson's theory of public expenditure demonstrates that
A. government is inefficient and will always engage in too much spending.
B. an efficient mix of public goods is produced when local land/housing prices and taxes come to reflect consumer preferences.
C. an optimal (or most efficient) level of output exists for every public good.
D. through government regulation of private industry, the optimal level of public good provision is achieved.
Answer: C
Economics
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