Chapter 14 - Public goods & tax policy

________- seeking: socially unproductive efforts of people or firms to win a prize.

________ public good: good /service that, to a high degree, is both non- rival and non- excludable.

________ of a public good occurs at the quantity for which the demand curve intersects the marginal cost curve for the public good.

Private for- ________ also can become providers when new technologies such as pay- per- view television convert public goods into collective goods.

________ creates economic surplus not only by providing public goods but also by regulating activities that generate externalities and by defining and enforcing property rights.

________ good: one for which non- payers can not easily be excluded and for which each unit consumed by one person means one less unit available for others.

good/service that, to at least some degree, is both non-rival and non-excludable

good whose consumption by one person does not diminish its availability for others

good that is difficult, or costly, to exclude non-payers from consuming

good/service that, to a high degree, is both non-rival and non-excludable

good/service that, to at least some degree, is non-rival but excludable

one for which non-payers can easily be excluded and for which each unit consumed by one person means one less unit available for others

one for which non-payers cannot easily be excluded and for which each unit consumed by one person means one less unit available for others

tax that collects the same amount from every taxpayer

tax under which the proportion of income paid in taxes declines as income rises

one under which all taxpayers pay the same proportion of their incomes in taxes

one in which the proportion of income paid in taxes rises as income rises

public expenditure that is larger than the total benefit it creates but that is favored by a legislator because his or her constituents benefit from the expenditure by more than their share of the resulting extra taxes

practice whereby legislators support one another's legislative proposals

socially unproductive efforts of people or firms to win a prize

government borrowing that leads to higher interest rates, causing private firms to cancel planned investment projects (i.e., the tendency of increased government deficits to reduce investment spending)

Good/service that, to at least some degree, is both non-rival and non-excludable

Good whose consumption by one person does not diminish its availability for others

Good that is difficult, or costly, to exclude non-payers from consuming

Good/service that, to a high degree, is both non-rival and non-excludable

Good/service that, to at least some degree, is non-rival but excludable

One for which non-payers can easily be excluded and for which each unit consumed by one person means one less unit available for others

One for which non-payers cannot easily be excluded and for which each unit consumed by one person means one less unit available for others

Tax that collects the same amount from every taxpayer

Tax under which the proportion of income paid in taxes declines as income rises

One under which all taxpayers pay the same proportion of their incomes in taxes

One in which the proportion of income paid in taxes rises as income rises

Public expenditure that is larger than the total benefit it creates but that is favored by a legislator because his or her constituents benefit from the expenditure by more than their share of the resulting extra taxes

Practice whereby legislators support one another's legislative proposals

Socially unproductive efforts of people or firms to win a prize

Government borrowing that leads to higher interest rates, causing private firms to cancel planned investment projects (i.e., the tendency of increased government deficits to reduce investment spending)