A government-inhibited good is one that
A) cannot be individually consumed.
B) would be underproduced by the private market.
C) should be subsidized to correct the market failure and productive inefficiency.
D) has been deemed socially undesirable via the political process.

Question

Quizplus · Accepted Answer

A government-inhibited good is one that the government has deemed socially undesirable via the political process. This means that the government has intervened and imposed restrictions or bans on the production, distribution, or consumption of the good. Examples of government-inhibited goods include illegal drugs, firearms in some countries, and certain types of pornography.

A Government-Inhibited Good Is One That