People Have Little Incentive to Produce a Public Good Because

question 33

Multiple Choice

People have little incentive to produce a public good because

• A) the social benefit is less than the private benefit.
• B) the social benefit is less than the social cost.
• C) there is a free-rider problem.
• D) there is a Tragedy of the Commons.

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Definitions:

Collect Taxes

The process by which a governmental authority requires individuals or entities to contribute to public revenues.

Judicial Review

The power of a court to review legislative and executive actions, such as a law or an official act of a government employee or agent, to determine whether they are constitutional.

Marbury v. Madison

A seminal U.S. Supreme Court case in 1803 that established the principle of judicial review, empowering courts to strike down laws and executive actions they find unconstitutional.

Presidential Veto

The power of the President of the United States to refuse to sign a bill into law, thus preventing its enactment.