The government's provision of nonexcludable public goods such as national defense is accepted because
A) government is more efficient than private firms at producing goods.
B) the market fails to produce nonexcludable public goods as a result of the free-rider problem.
C) people do not value public goods such as national defense very highly.
D) a and c
E) all of the above
Correct Answer:
Verified
Q86: Marginal social costs are equal to
A)marginal private
Q87: A negative externality exists when
A)a person's or
Q88: Marginal social benefits are equal to
A)marginal private
Q89: According to the Coase theorem, externalities
A)must usually
Q90: Generally, positive externalities result in
A)too much of
Q92: Generally, negative externalities result in
A)too much of
Q93: A negative externality exists when
A)marginal social costs
Q94: When marginal private cost is less than
Q95: A positive externality exists when
A)marginal social costs
Q96: If a positive externality exists, _ in
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