Question 1 : An item or event that results in a third part receiving a benefit or incurring a cost to a third party is called an externality.

True

False

Question 2 : A private good is a good that is neither excludable nor rival in consumption.

True

False

Question 3 : A budget deficit is an excess of government spending over government revenues.

True

False

Question 4 : The average tax rate is the extra taxes paid on additional dollar of income.

True

False

Question 5: A progressive tax is a tax for which high-income taxpayers pay a larger fraction of their income tan o lower-income taxpayers.

True

False