An Example of a Public Good That Is Difficult to Make

question 23

Multiple Choice

An example of a public good that is difficult to make excludable is:

• A) sewer systems.
• B) fire protection.
• C) national defense.
• D) All of these are nonexcludable public goods.

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Definitions:

Proportional Income Tax

A tax system where the rate of taxation is the same for all taxpayers, regardless of income level.

Regressive Income Tax

A tax system where the tax rate decreases as the taxpayer's income increases, placing a higher relative burden on lower-income earners.

Laffer Curve

A theoretical representation of the relationship between government revenue raised by taxation and the rate of taxation, suggesting an optimal tax rate for maximizing revenue.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount increases, meaning higher income earners pay a larger percentage of their income in taxes compared to lower income earners.