Econ 4th Edition by William McEachern

Exercise 9

GOVERNMENT Complete each of the following sentences:
a. When the private operation of a market leads to overproduction or underproduction of some good, this is known as a(n) _______________.
b. Goods that are nonrival and nonexclusive are known as ___________.
c. ____________ are cash or in-kind benefits given to individuals as outright grants from the government.
d. A(n) confers an external benefit on third parties that are not directly involved in a market transaction.
e. _____________ refers to the government's pursuit of full employment and price stability through variations in taxes and government spending.