As the size of government increases as a share of the economy,
A) the burden of deadweight losses of taxation generally diminishes.
B) the rate of return derived from projects undertaken by the government will tend to increase.
C) the government generally becomes more heavily involved in unproductive and even counterproductive activities.
D) the activities of government are generally limited to protective functions such as public safety , national defense, and provision of a limited set of public goods.

Question

Quizplus · Accepted Answer

As the government grows, it often expands into areas beyond essential services, potentially leading to inefficiencies and involvement in less productive or counterproductive activities.

As the Size of Government Increases as a Share of the Economy