Expansion in the size of government relative to the market sector will eventually retard economic growth because
a. larger governments will be more involved in activities for which they are ill-suited.
b. the higher taxes to finance a bigger government will lead to larger and larger deadweight losses from taxation.
c. the incentive to engage in innovative activities and respond to change is weaker in government than in the market sector.
d. all of the above are correct.
D
You might also like to view...
If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are
A) a substitute for camcorders. B) a complement to camcorders. C) an inferior good. D) a normal good. E) made using advanced technology.
Based on the data in the table above, what is the average product of labor when Decent Donuts employs five workers?
A) 16.66 dozen donuts per day B) 17.2 dozen donuts per day C) 20 dozen donuts per day D) 22 dozen donuts per day