According to the equimarginal principle,the efficient level of government expenditures occurs when the benefit of the last dollar spent for each government purchase is

Question

Quizplus · Accepted Answer

The equimarginal principle states that the most efficient allocation of resources occurs when the marginal benefits of spending on each activity are equal. Therefore, in the case of government expenditures, the efficient level occurs when the benefit of the last dollar spent for each government purchase is equal to the benefit of the last dollar spent in the private sector. This ensures that resources are allocated efficiently between the public and private sectors. Therefore, the correct answer is C, equal to the benefit of the last dollar spent in the private sector.

According to the Equimarginal Principle,the Efficient Level of Government Expenditures