A Public Good Is One for Which the Cost of Exclusion

question 201

True/False

A public good is one for which the cost of exclusion is prohibitive and for which the marginal cost of provision to another consumer is zero.

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Definitions:

Deductions

Expenses that can be subtracted from gross income to reduce taxable income, such as mortgage interest, medical expenses, and charitable contributions.

Tax Credit

A direct reduction in tax liability, not merely a reduction in taxable income, that can decrease the amount of taxes owed.

Tax Deduction

A reduction in taxable income for certain expenses, allowing individuals or entities to pay less tax.

Social Security Taxes

Taxes levied on both employers and employees to fund the Social Security program, which provides benefits to retirees, disabled individuals, and survivors.