The question of whether the public or the private sector is ...

[Chloeellawright]

The question of whether the public or the private sector is appropriate to provide public goods must be decided on a case by case basis.
 
  a. True b. False

Question 2

Around what percentage of state government spending is finance by intergovernmental transfers? Give three justifications for intergovernmental transfers.
 
  What will be an ideal response?

[debra928]

Answer to Question 1

a

Answer to Question 2

Around 19 percent of total state government revenues come from intergovernmental transfers. Intergovernmental transfers are justified on three different grounds. First, higher level governments provide money to encourage lower level governments to undertake certain programs. Second, taxation can be shifted to higher governments, where taxes are harder to avoid. Third, intergovernmental transfers can help achieve equity goals by equalizing resources between states.