GROUP QUIZZES (ALL)

• Public goods


  Commodity or service that every member of a society can use without reducing its availability to all others
• Public goods

  • Infrastructure
  • National Defense
  • Basic Needs like food and water
• Nonrivalrous


  A characteristic of public goods where one person uses a good, it does not prevent others from using it
• National Defense


  Includes military, national security system, disaster response, and emergency management services
• Quasi public goods


  Also known as the "Semi-public Goods"
• Government funding sources for public goods

  • Taxation
  • Bonds
  • Debt Securities
  • Foreign Assistance
• Quasi-public goods


  Goods which have a characteristic of both public goods and private goods
• Non-excludable


  It is costly or impossible for one user to exclude others from using a good
• Private sector provision


  Refers to the delivery of goods and services by businesses and organizations that are owned and operated by private individuals or entities, rather than by the government or public sector
• Efficiency of government spending


  Refers to how effectively public funds are utilized to achieve desired outcomes and objectives
• Positive consumption externalities


  It is when someone's consumption benefits others without receiving compensation from them
• Negative externalities


  It occurs when consuming or producing goods or services, it causes a cost or negative impact to the third party
• Negative consumption externalities


  When the benefit to society as a whole is less than the benefit to the individual consumer
• Positive production externalities


  It is when a firm's production increases the well-being of others but the firm is not compensated by those others
• TRUE - Positive externalities occur when it causes a benefit to a third party and both private and social level is gaining into it.
• TRUE - Negative consumption externalities occur when the use of a good or service negatively influences people who are not directly involved in the consumption or transaction
• FALSE - In negative production externalities, the marginal private cost is greater than the marginal social cost
• TRUE - Positive production externalities lead to under-production
• Solutions to externalities

  • Tax(es)
  • Subsidies
  • Government Regulation
• Poverty line


  The threshold below which an individual's income is classified as being in poverty
• Major economic concerns

  • Income inequality
  • Discrimination
  • Poverty
• Discrimination


  The unfair treatment of people or groups based on certain qualities like age, gender, sexual orientation, or disabilities
• Poverty


  The state of having little or no money, goods, or means of support
• Income inequality


  The uneven distribution of financial wealth among a population
• Benefits to society if income inequality, poverty, and discrimination were properly addressed

  • Enhanced Economic Development
  • Improved Quality of Life
  • Greater Social Stability
  • Stronger Civic Engagement
  • Enhanced Global Competitiveness
• Expanding Social Assistance Programs, Improving Access to Quality Education and Strengthening Governance and Anti-corruption measures

  Addresses income inequality
• Price discrimination


  A pricing strategy that charges consumers different prices for identical goods or services
• Types of government


  The overarching structure and distribution of power within a state
• Forms of government


  The system of governance and the relationship between different branches of government
• Private costs


  The costs that the producer or consumer incurs in the course of their economic activity
• Market failure


  It is triggered when there is an acute mismatch between supply and demand, prices do not match reality, or when individual interests are not aligned with collective interests
• Pollution


  In economics, it is defined as the introduction of contaminants into the natural environment that cause adverse change
• Examples of market failure

  • Missing market
  • Monopolies
  • Externalities
• Roles of the government in economics

  • Regulation
  • Public goods and services
  • Economic stabilization
  • Redistribution
  • Economic development
• Taxation


  The imposition of compulsory levies on individuals or entities by governments in almost every country of the world
• Economic stability


  It is implemented through tax policy, government expenditure policy, monetary policy, and debt management—is that of maintaining high employment and price stability
• Progressive taxes


  It is characterized by a more than proportional rise in the tax liability relative to the increase in income
• Resource allocation


  In the absence of a strong reason for interference, such as the need to reduce pollution, the first objective, resource allocation, is furthered if tax policy does not interfere with market-determined allocations
• Incidence


  A tax rests on the person(s) whose real net income is reduced by the tax. It is fundamental that the real burden of taxation does not necessarily rest upon the person who is legally responsible for payment of the tax
• Labor market


  It is also known as the job market that refers to the supply and demand for labor