A Government-Inhibited Good Is One That

question 191

Multiple Choice

A government-inhibited good is one that

• A) cannot be individually consumed.
• B) would be underproduced by the private market.
• C) should be subsidized to correct the market failure and productive inefficiency.
• D) has been deemed socially undesirable via the political process.

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Definitions:

Stock Repurchases

The act of a company buying back its own shares from the marketplace, reducing the amount of outstanding stock.

Capital Structure

The mix of different forms of funding used to finance a company's operations and growth, including debt and equity.

Income Tax

A tax levied by governments on the income generated by businesses and individuals within their jurisdiction.

Dividend Reinvestment Plan

A corporate program enabling investors to use their cash dividends to buy more or partial shares when dividends are paid out.