Question

the following speech was given in a televised political debate. our government should provide free health care, higher education, and retirement pensions to all citizens. utilities such as electricity and public transportation should be owned by the government for the benefit of all. at the same time, we believe citizens should have the right to own property and to run private businesses in other fields. what would be one disadvantage of this type of economic system? a. greater economic opportunities for diverse groups b. higher rates of taxation which reduce private initiative c. more technological advances through individual effort d. fewer differences in the provision of health care services

Explanation:

The economic system described involves significant government - funded public services and government - owned utilities. To finance these, higher taxes are likely. High taxes can reduce the incentive for private individuals to start businesses or work harder, as a larger portion of their earnings goes to the government.

Answer:

B. higher rates of taxation which reduce private initiative