Public Goods Are Distinguished by Two Primary Characteristics

question 16

Multiple Choice

Public goods are distinguished by two primary characteristics.What are they?

• A)nonrivalry and nonexcludability
• B)government intervention and low prices
• C)market failure and high prices
• D)rivalry and exclusivity

Apply knowledge of trade theory to evaluate national policy decisions.

Understand how taxes affect market equilibrium, including changes in consumer surplus, producer surplus, and government revenue.

Understand the concept of deadweight loss and how taxes contribute to it.

Analyze the impact of taxes on market size and participant behavior.

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Definitions:

Trochlear

Pertaining to the fourth cranial nerve that innervates the superior oblique muscle of the eye, allowing for movement.

Reflex Arc

The neural pathway that controls a reflex action, including at least one sensory neuron and one motor neuron, creating an automatic response to a stimulus.

Receptor

A protein molecule that receives and responds to chemical signals from hormones, neurotransmitters, or other stimuli outside the cell.

Vestibulocochlear

Pertaining to the vestibulocochlear nerve, the eighth cranial nerve, which is responsible for transmitting sound and equilibrium (balance) information from the inner ear to the brain.