Disadvantages of decentralization are
A) intercommunity externalities.
B) forgone scale economies in the provision of public goods.
C) inefficient taxation.
D) the lack of ability to redistribute income.
E) all of these answer options are correct.

Question

Quizplus · Accepted Answer

All of these options are disadvantages of decentralization. Intercommunity externalities refer to the impact of local decisions on neighboring communities, while forgone scale economies refer to the potential cost savings from centralized provision of public goods. Inefficient taxation and the lack of ability to redistribute income can both result from a lack of central coordination and regulation.

Disadvantages of Decentralization Are