In the "Oates' decentralization theorem," what is the primary advantage of decentralized government structures in providing public goods and services? A) Decentralized governments can tailor public goods and services more closely to the preferences and needs of local populations. B) Centralized governments are more efficient at providing public goods due to economies of scale. C) Decentralized governments reduce administrative costs significantly compared to centralized governments. D) Centralized governments are better at addressing externalities associated with public goods.
In the "Oates' decentralization theorem," what is the primary advantage of decentralized government structures in providing public goods and services? A) Decentralized governments can tailor public goods and services more closely to the preferences and needs of local populations. B) Centralized governments are more efficient at providing public goods due to economies of scale. C) Decentralized governments reduce administrative costs significantly compared to centralized governments. D) Centralized governments are better at addressing externalities associated with public goods.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:In the "Oates' decentralization theorem," what is the
primary advantage of decentralized government
structures in providing public goods and services?
A) Decentralized governments can tailor public
goods and services more closely to the preferences
and needs of local populations.
B) Centralized governments are more efficient at
providing public goods due to economies of scale.
C) Decentralized governments reduce administrative
costs significantly compared to centralized
governments.
D) Centralized governments are better at addressing
externalities associated with public goods.
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