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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The income elasticity of demand refers to:
A. a change in income following a change in quantity demanded. B. the change in income required for quantity demanded to change by 1%. C. the substitution of one good for another as income changes. D. the percentage change in quantity demanded resulting from a 1-percent increase in income.
State legislators who wanted to eliminate state regulation of the trucking industry would be most likely to find support among
A) business owners who must pay higher prices for deliveries as a result of the regulations. B) owners and managers of large trucking concerns. C) owners of small trucking concerns. D) unions that represent truck drivers.