Economics: Types of Goods

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What is the characteristic of a public good?

It is owned by someone and has a financial interest.

It is not excludable and is essentially infinite. (correct)

It is reserved for private use and can be excluded.

It is provided by the government and is limited.

What is the main difference between public goods and toll goods?

Public goods are provided by the government, while toll goods are not.

Public goods are exclusive, while toll goods are inclusive.

Public goods are free, while toll goods require payment. (correct)

Public goods are limited, while toll goods are infinite.

Why is a home considered a private good?

Because it is a public service.

Because it is owned by the government.

Because it is open to everyone.

Because it is reserved for personal use and requires payment. (correct)

What is an example of a common good?

Forests Signup and view all the answers

What is the characteristic of a toll good that is similar to a public good?

It is open to all and theoretically infinite if maintained. Signup and view all the answers

What type of policy tends to collect payments or resources from many but concentrates direct benefits on relatively few?

Distributive policy Signup and view all the answers

Which type of policy is most effective for controlling or protecting public or common resources?

Regulatory policy Signup and view all the answers

What is the primary goal of redistributive policy?

To transfer income and wealth from one group to another Signup and view all the answers

Which of the following is NOT a key domestic arena of public policy?

Environmental conservation Signup and view all the answers

Which social safety net program provides health insurance for low-income citizens?

Medicaid Signup and view all the answers

What is the main role of policy analysts?

To assess potential policies and predict their outcomes Signup and view all the answers

What type of policy is Social Security?

Social welfare policy Signup and view all the answers

What is the primary focus of Keynesian economic policies?

Increasing consumer consumption through government spending Signup and view all the answers

Which agency is responsible for promoting scientific research and development?

The National Science Foundation Signup and view all the answers

What is the primary role of policy advocates?

To work towards changing public policy to fix a particular issue Signup and view all the answers

How many sequential stages are involved in the public policy process?

Four Signup and view all the answers

What is the focus of supply-side economics?

The productive capacity of a country as the primary driver of economic growth Signup and view all the answers

What was the main approach of the U.S. government to economic policy until the 1930s?

A hands-off approach, assuming the economy would self-correct Signup and view all the answers

What is the primary characteristic of mandatory spending?

It is allocated for specific entitlement programs Signup and view all the answers

What is the purpose of tax policy in generating revenue?

To provide benefits to residents in exchange for taxes Signup and view all the answers

What is the main difference between mandatory and discretionary spending?

The frequency of authorization by Congress Signup and view all the answers

Which of the following is an example of discretionary spending?

Science and technology Signup and view all the answers

What is the primary goal of Keynesian policy?

To stimulate economic growth through government spending Signup and view all the answers

What is the primary effect of a progressive tax system on taxpayers?

It increases the effective tax rate as income increases Signup and view all the answers

What is the primary role of the Federal Reserve Board in the economy?

Influencing monetary policy and regulating banks Signup and view all the answers

What is the result of a regressive tax system on the wealthy?

They pay a lower percentage of their income in taxes Signup and view all the answers

What is the main function of the Federal Open Market Committee?

Setting interest rates and macroeconomic policy Signup and view all the answers

How can monetary policy change the economy?

Through the level of interest rates Signup and view all the answers

What is the primary goal of the Federal Reserve Board's monetary policy?

To control the growth of the money supply Signup and view all the answers