How is the production of public goods funded?
Some public goods are voluntarily funded by persons with a sense of obligation, but many are not. When voluntary provision does not suffice, there are three basic ways to fund the production of public goods. First, the public good can be tied with a private good. Second, the law can make a public good excludable. For example, to encourage inventive activity and discourage free riding, inventors can apply for patents that will allow them to control unauthorized use of their inventions for 17 years. Third, governments can supply public goods financed by taxes that citizens have little choice but to pay.
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In the long run, a perfectly competitive firm leaves the market if the market price is less than the firm's average total cost
Indicate whether the statement is true or false
Suppose duopolists face the market inverse demand curve P = 100 - Q, Q = q1 + q2, and both firms have a constant marginal cost of 10
If firm 1 is a Stackelberg leader and firm 2's best response function is q2 = (100 – q1)/2, at the Nash-Stackelberg equilibrium firm 1's output is A) 30. B) 40. C) 60. D) 70.
The tools of the Federal Reserve include
A) reserve requirements. B) the discount rate. C) open market operations. D) all of these choices.
In 2009-2010 the federal government
What will be an ideal response?