Devolution is when Congress does which of the following?

• A. Eliminates all government intervention in markets
• B. Privatizes public goods and services
• C. Centralizes all regulatory power at the federal level
• D. Transfers authority for policy implementation from the federal government to state or local governments

Answer: (D)

Verified step by step guidance

1. Understand the concept of devolution in the context of government and economics. Devolution refers to the transfer of authority and responsibility for public functions from a central government to lower levels of government, such as state or local governments.
2. Identify the key aspect of devolution: it involves shifting policy implementation powers downward, rather than eliminating government intervention or centralizing power.
3. Compare the given options with the definition of devolution: eliminating government intervention means no regulation, privatizing public goods means transferring to private sector, and centralizing power means increasing federal control, none of which match devolution.
4. Recognize that the correct description of devolution is the transfer of authority for policy implementation from the federal government to state or local governments.
5. Summarize that devolution is about decentralizing power, allowing more local control over policies and programs, which can lead to more tailored and efficient governance at the local level.