High income countries with larger governments as a share of GDP have generally
A) grown less rapidly than their counterparts with smaller governments.
B) experienced less deadweight losses resulting from taxes and/or government borrowing.
C) seen the government decrease in size as real GDP rises.
D) been able to be more economically efficient.

Question

Quizplus · Accepted Answer

High income countries with larger governments as a share of GDP have generally grown less rapidly than their counterparts with smaller governments due to inefficiencies and resource allocation issues associated with larger government size.

High Income Countries with Larger Governments as a Share of GDP