When There Are Too Few or Too Many Resources Going

question 86

Multiple Choice

When there are too few or too many resources going to an economic activity,

• A) a public good exists.
• B) a market failure exists.
• C) a regressive tax is in place.
• D) a free-rider problem exists.

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Definitions:

Taxation

The practice by which governments impose charges on citizens and corporate entities to fund public spending and services, playing a key role in economic policy and regulation.

Local Government

The administration of a particular town, city, county, or district with responsibility for providing services and enforcing regulations at a local level.

Expenditures

The action of spending funds or the amount spent on various items or services, including operational costs, investments, and personal spending.

Education

Education involves the systematic instruction and training provided by schools and universities to impart knowledge, skills, and critical thinking abilities.