Public goods are provided by government because
A) governments are more efficient than private firms at producing public goods.
B) free-rider problems result in underproduction by private markets.
C) people value national defence very highly.
D) private firms will make an economic profit.
E) private firms do not take into account the impact of external costs.
Correct Answer:
Verified
Q6: Which one of the following goods exhibits
Q8: Private goods are
A)nonrival and excludable.
B)nonrival and nonexcludable.
C)always
Q13: An example of common resource is
A)fish in
Q21: For a private good, the economy's marginal
Q23: The economy's demand curve for a public
Q26: The marginal social benefit curve for a
Q30: An economy's marginal social benefit curve for
Q34: Public choice theory predicts that government
A)acts to
Q35: A Big Mac is
A)excludable and rival.
B)nonexcludable and
Q37: The quantity of a public good produced
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