UNIT 8- PUBLIC GOODS & INEQUALITY Flashcards
1
Q
What is a public good?
A
Public goods are good for both nonexcludable and non-rival
They suffer from “free ride problem” because they are non-rival. It would be inefficient to charge people from consuming them.
2
Q
Market can only efficiently produce _____ goods
A
Private goods
3
Q
What is welfare state?
A
The collection of government programs designed to help economic hardship
4
Q
What is the logic of welfare? A.A.R
A
- Alleviate income inequality
- Alleviate economic insecurity
- Reduce poverty and provide healthcare acccess
5
Q
What is a Government transfer?
A
A government payment to an individual or family
6
Q
What is a poverty program?
A
A government program designed to aid the poor
7
Q
What is a Social insurance program?
A
A government program designed to provide protection against unpredictable financial distress
8
Q
What is In-Kind benefit?
A
Benefit in the form of a good or service
