In order for power to be legitimate a government must have_____________?
Correct answer: B. legitimate authority
- A. the ability to coerce agreement
- B. legitimate authority
- C. a charismatic leader
- D. a strong army
Explanation
Power becomes legitimate when it is accepted as rightful authority, rather than imposed merely through coercion, military strength, or a leader's personality.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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