(Consider This) From an economist's perspective, when is government too big?

Question

Quizplus · Accepted Answer

Economists consider government too big when the incremental costs from additional government spending exceed incremental benefits. This means that the government is inefficiently allocating resources and creating a burden on taxpayers without providing adequate benefits. There is no fixed threshold at which government becomes too large, as it depends on the specific circumstances of each country and economy. Therefore, options A and B, which provide fixed percentage thresholds, are not appropriate for evaluating government size. Option D is also incorrect, as it suggests that government should continue to grow as long as the marginal benefits outweigh the marginal costs, which is not necessarily true.

(Consider This) from an Economist's Perspective, When Is Government Too