With a strong and active federal government, why do we need state and local governments?
Our model of government is one of fiscal federalism. The national government exists to provide services that the lower governments are unable to provide, such as national defense. The lower governments then provide services where they hold the comparative advantage, such as statewide public education and garbage pick-up. The idea is to place the government provider as close as possible to the people being served. This, it is hoped, will make the public entity responsible to the demands and changing needs of the voter.
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If Joey goes surfing for four hours instead of earning $10 per hour for those four hours, his opportunity cost is
A) the good time spent surfing. B) the cost of gasoline used to get to the beach. C) the travel time to the beach. D) $40.
Roughly how much of health care spending in the U.S. is financed by private and public insurance?
A. 20 percent B. 40 percent C. 60 percent D. 80 percent