What is a public good?
A. A public good is a product or service that one consumer cannot prevent another consumer from using, and is accessible without payment.
B. A public good is a product or service that one consumer cannot prevent another consumer from using, and is accessible without payment.
C.A public good is a product or service that one consumer from using, and is accessible without payment.
D. A public good is a product or services that one consumer can prevent another consumer from using, and is accessible without payment.
What is a negative externality?
A. Negative externalities are goods or services that one consumer can limit another consumer’s use of.
B. Negative externalities occur when the social cost of a good or services is lower than the private cost.
C. Negative externalities are good or services that are subject to the free-rider problem.
D. Negative externalities occur when the social cost of a good or service is higher than the private cost.
Summarize whether the Laffer curve is used to justify implementing expansionary fiscal polices for consumers.
A. The Laffer curve is used for monetarist because they believe in increasing the money supply when the when the economy is strong.
B. The Laffer curve is used for suppply-side economic theory, which means to use expansionary fiscal polices for producers and not consumers.
C. The Laffer curve is used by demand-side economists, who argue that expansionary fiscal polices should be used to benefit consumers.
D. The Laffer curve is used for classical theory economists because they believe reducing corporate tax rates and providing subsidies helps style economy.