A Tiebout model involves
A) completely mobile individuals.
B) governments generating no externalities.
C) perfect information.
D) all of these answer options are correct.

Question

Quizplus · Accepted Answer

A Tiebout model assumes completely mobile individuals who can easily move between different jurisdictions (choice A). It also assumes that governments generate no externalities, meaning that the cost or benefit of one government policy or action is not felt by others outside of that jurisdiction (choice B). Finally, the model assumes perfect information, meaning that individuals have access to complete and accurate information about the policies and quality of life in different jurisdictions (choice C). Therefore, all of the given answer options are correct (choice D).

A Tiebout Model Involves