Which of the following is not a result of the government privatizing a common resource?
A)Consumers are forced to consider all the costs and benefits of their consumption choices.
B)The resource gains excludability.
C)Efficiency is increased.
D)Undesirable side effects occur more often.

Question

Quizplus · Accepted Answer

Privatizing a common resource typically leads to the resource gaining excludability, where only those who pay for it can use it, potentially increasing efficiency as the resource is managed with market mechanisms. Consumers are also more likely to consider all costs and benefits of their consumption choices. However, privatization does not inherently lead to more undesirable side effects; these effects depend on the management and regulatory practices in place.

Which of the Following Is Not a Result of the Government