The Type of Good That Is Most Likely to Be

question 83

Multiple Choice

The type of good that is most likely to be subject to market failure is:

• A) a public good.
• B) a private good.
• C) an uncommon resource.
• D) a factor of production

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Definitions:

Consumers

Consumers are individuals or entities that purchase goods or services for personal use and not for manufacture or resale.

Long Run

The time period in which all inputs can be varied.

Excise Tax

A tax levied on specific goods, services, or activities, often aimed at discouraging certain behaviors (like smoking) or generating revenue from specific sectors.

Tax Wedge

The tax wedge is the difference between what consumers pay and what producers receive for a good or service due to taxation, affecting supply and demand.