ecocho15
Purchases or the production of goods or services by government agencies are called:
government purchases.
Public goods may be efficiently provided if they are financed through:
government tax revenues.
The models of market failure suggest that government intervention may ________ resource allocation but that the result _______ .
improve; may not be achieved
The best example of a good for which exclusion is prohibitively costly is:
national defense.
The best example of a good that has zero marginal cost to add another consumer is:
national defense.
The two largest sources of U.S. government revenue are:
payroll taxes and individual income taxes.
A tax that takes a higher percentage of income as income rises is a(n):
progressive tax.
The free-rider problem is most important for:
public goods.
Paying a tax of $20 on an income of $100, a tax of $15 on an income of $200, and a tax of $12 on an income of $300 is an example of a:
regressive tax.
In the case of an external cost:
the agent responsible for the external cost will produce too much of the good or service involved.
A public good is one for which:
the marginal cost of adding another consumer is zero.
The difference between government purchases and government expenditures is largely due to:
transfer payments.
The best example of a good for which exclusion is not prohibitively costly is:
a bicycle.
An example of a transfer payment is:
a Social Security payment to the disabled.
The market failure of imperfect competition is most likely to result if Peanuts 'R' Us:
acquires ownership of all peanut butter processing plants in the country.
All spending by government agencies is called:
government expenditures.