The inordinate growth of government is a side effect of________________?
Correct answer: B. government intervention in the economy
- A. the increasing poverty of individual states
- B. government intervention in the economy
- C. the political apathy of public
- D. the willingness of individuals to give up traditional freedoms
Explanation
Government intervention expands the scope and functions of the state, often leading to growth in government size and activity. Poverty, political apathy, and surrender of freedoms are not the standard economic explanation.
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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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