Which of the Following Is TRUE When Measuring the Role

Multiple Choice

Which of the following is TRUE when measuring the role of the government in an economy by the amount of its government spending?

A) The amount of government spending overstates the role of the government in the economy because it ignores the costs associated with corruption in the government.
B) The amount of government spending understates the role of the government in an economy because of the effects of government policies on economic activity.
C) The amount of government spending overstates the role of the government in the economy because most government actions have negative effects on free markets.
D) Government spending is not related to the role of government in the economy because most government actions are motivated by politics.