According to ________, an efficient mix of public goods is produced when local land/housing prices and taxes reflect consumer preferences.

A) Samuelson's theory
B) the Tiebout hypothesis
C) the Theory of Public Choice
D) the Coase theorem

Tiebout Hypothesis

An efficient mix of public goods is produced when local land/housing prices and taxes come to reflect consumer preferences just as they do in the market for private goods.

Public Goods

Goods that are neither excludable nor rival in consumption, meaning anyone can use them, and one person's use does not diminish the ability of another to use it also.