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The democratic state is based on the social contract theories of Locke and Rousseau These theories maintain that ?

Correct answer: C. the people allow themselves to be governed for their own good

  • A. people must obey the rulers at all times
  • B. the rulers govern at the direction of God
  • C. the people allow themselves to be governed for their own good
  • D. a society cannot exist without authoritarian rulers

Explanation

Locke and Rousseau treated government as deriving its legitimacy from the consent of the governed, with authority justified by the people's welfare. This is the central idea of the social contract.

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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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