Market Failures, Taxes, and Subsidies

What is the name of people who benefit without paying?

• Free riders

• Free takers

• Free loaders

Things that are for our collective well-being are funded by our _____.

• government.

• free markets.

• selves.

• emus.

A market failure is when markets alone can't provide enough of a public good.

• True

• False

What are the two characteristics of a public good?

• Non-exclusionary

• Non-rivalry

• Non-socialist

• Non-conformist

Tragedy of the _____ is the idea that common goods that everyone has access to are often misused and exploited.

• Commons

• Exceptions

• People

• Oligarchs

_____ are situations when there's an external costs or external benefits that accrue to other people or society as a whole.

• Externalities

• Internalities

• Progressives

Education is a negative externality.

• False

• True

Market based policies are policies that do not manipulate the market in any way.

• False

• True

Regulatory policies are rules established by _____ decree.

• government

• social

• private

• market

In general, economist prefer to favor ______ based policies.

• market

• regulation