A Good Whose Consumption the Public Sector Encourages on Grounds

question 37

Multiple Choice

A good whose consumption the public sector encourages on grounds that individuals don't adequately weigh its benefits is a:

• A)private good.
• B)public good.
• C)demerit good.
• D)merit good.

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Definitions:

"Rent-a-Judge"

A private adjudication service where parties in a dispute pay for a retired judge or private arbitrator to resolve their case outside of the public court system.

Dispute Resolution

The procedure for resolving disagreements or conflicts between parties, which can include negotiation, mediation, or arbitration.

Mediation

A form of dispute resolution where a neutral third party (mediator) helps the disputing parties come to a mutually acceptable agreement.

Arbitration

A form of alternative dispute resolution where a neutral third party, known as an arbitrator, makes decisions to resolve a dispute outside of court.