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:

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied of a good responds infinitely or extremely to changes in its price.

Excise Tax

A tax applied on specific goods, such as tobacco and alcohol, usually to discourage their use or raise government revenue.

Excise Tax

A tax charged on specific goods and services, such as alcohol, tobacco, and gasoline, usually to discourage their use or generate revenue.

Equilibrium Price

The price in a competitive market at which the quantity demanded and the quantity supplied are equal, there is neither a shortage nor a surplus, and there is no tendency for price to rise or fall.