Some Economists Have Argued That Federalism Leads States to Offer

Some economists have argued that federalism leads states to offer more efficient mixes of taxes and services due to ________.

A) favorable economies of scale at the state level
B) accurate information about local conditions
C) market forces arising from interstate competition for residents and businesses
D) the ability of states to function as "laboratories of democracy"
E) states' shared responsibilities in some important policy areas