Why would fiscal disparities among states be considered a disadvantage of federalism?
a. Poorer states benefit more from federal and state programs while paying less in taxes for the services, thus creating inequities for wealthier citizens.
b. The cost of living differs in each state.
c. The tax rate differs in each state.
d. States with lower average incomes have less taxable resources, leaving wide fiscal inequalities among states.
e. Fiscal disparities have no bearing on federalism since the government has the power to tax.
Question 2
In 1932, Supreme Court Justice Louis Brandeis coined a metaphor that is still used frequently by describing creative federalism as encouraging laboratories of democracy. What is meant by this concept?
a. States can be used to test new policies and the states also absorb the accountability if the efforts fail, thereby protecting the federal governments integrity.
b. States can try social and economic experiments without risk to the rest of the country, and if they are successful, other states can duplicate their efforts.
c. The federal government can use states as laboratories for trying new policies.
d. States are obligated to test the federal governments policies since they are most accountable to the citizens.
e. As laboratories, one state could have a democracy while other states experimented with other forms of government.
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