The Problem of Someone Deriving a Benefit from the Actions

question 14

Multiple Choice

The problem of someone deriving a benefit from the actions of others is known as the

• A) collective good.
• B) free rider problem.
• C) umbrella problem.
• D) collective good effect.
• E) limited interest effect.

---

Definitions:

Excise Taxes

Taxes levied on the sale of specific goods and services, such as gasoline, cigarettes, and alcohol.

Fiscal Year

A fiscal year is a one-year period that companies and governments use for accounting purposes and preparing financial statements, which does not necessarily align with the calendar year.

Social Security Tax

Taxes collected to fund the Social Security program, providing benefits for retirement, disability, and survivors.

Personal Income Tax

A tax levied on individuals or households by the government based on their income, with rates typically increasing as income increases.