A Public Good Is a Good That

question 110

Multiple Choice

A public good is a good that

• A) is excludable.
• B) is rival.
• C) is free.
• D) is available regardless of willingness to pay.

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Definitions:

Import Tariff

A tax imposed by a government on goods and services imported from other countries, often to protect domestic industries.

Market Outcome

The result of all the buying and selling activities on the market prices, quantities sold, and quantities produced of goods and services.

Domestic Price

The price at which goods and services are sold within a country's borders, as opposed to international or export prices.

Subsidy

A benefit given by the government to groups or individuals, usually in the form of a cash payment or tax reduction, to remove some type of burden and is considered to be in the interest of the public.