The federal government has increased its responsibilities at the local level because_____________?
Correct answer: A. the states inefficiency
- A. the states inefficiency
- B. the tenth amendment
- C. urban influence on the states
- D. excess state revenues
Explanation
Federal responsibilities expanded partly because state governments were often unable or inefficient in dealing with increasingly complex social and economic problems. The Tenth Amendment reserves powers to the states, so it does not itself explain federal expansion.
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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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